OctaFX | OctaFX Forex Broker
Open trading account
Back

WTI struggling to maintain bid on $51 handle

  • WTI struggles to hold the bid as he OPEC talks meet a roadblock.
  • Early signs of easing virus fears could imply a less prolonged demand.

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

 

NZD/USD Asia Price Forecast: Kiwi at a stone’s throw from 2020 lows

NZD/USD fell sharply throughout the first month of 2020. It is now trading below the main simple moving average (SMAs) as bears are looking for a break below t
Read more Previous

AUD/USD: On the back foot near 0.6730, eyes on RBA’s Lowe’s speech, monetary policy statement

AUD/USD keeps the losses while being around 0.6730 at the start of Friday’s Asian session. The pair snapped the two-day winning streak on Thursday as
Read more Next
Start livechat