United States Commodities market experienced a rise of 6 % in the price of crude oil futures. All oil-exporting countries are keeping high expectations from the meeting. The OPEC and OPEC+ nations will meet regarding the production cut for crude oil. The crude oil market is declining due to the outbreak of coronavirus.
In the U.S, West Texas Intermediate (WTI) crude oil commodity was trading up around 5% or $1.25 at $ 26.30 per barrel. It touched today’s high of $26.65.It resulted in adding profits in the earlier session.
On Thursday, the OPEC and OPEC+ nations, including Russia, are meeting through Video conference. The meeting is to discuss regarding production cut of crude oil.
In the last meeting held in March, OPEC and OPEC+ nations failed to conclude the extent of a production cut by each country. It ended up triggering a price war between two top oil-exporting nations i.e., Russia and Saudi Arabia. it has severely affected the crude oil market.
Expectations increased from this meeting. Media reports claim Russia is ready to decrease its crude oil output by 1.5 million barrels per day (BPD). Energy Minister of Algeria also said he expects a productive meeting. A large and unconditional crude oil production cut is unlikely, analysts mentioned. First, all the nations should decide on their production cut. In the coming months, the Crude Oil market is going to experience a 30-35% cut in global crude oil demand.