WTI struggling to maintain bid on $51 handle

The price of a barrel of oil on Thursday was struggling to maintain bid. At the time of writing and into the close, WTI is trading at $51.05 between a range of $50.26 and $52.16. Oil futures ended on a mixed note on Thursday as well while investors looked to the Organization of the Petroleum Exporting Countries to cut production to stem off the risks of a global slowdown and demand due to the coronavirus.  

OPEC hopes diminished 

The OPEC+ Joint Technical Committee recommended a cut to production of its members and other allies of 600,000 barrels a day, although the committee wasn't the decision-making body and the recommendation must be weighed by OPEC’s oil ministers. Also, Russia turned down the idea proposed which has put a significant dent in the prospects of there being such an accord.

"The size and time-length of the emergency curtailment would remain critical questions for energy market participants — but early signs of easing virus fears could also imply a less prolonged demand hit than initially anticipated. A large OPEC+ emergency curtailment, combined with Libyan and Iraqi disruptions could put a floor in prices,"

analysts at TD Securities explained.

WTI levels