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  • OPEC+ will reportedly reduce output if other producers join the effort.
  • Investors seem to be hesitant to make large bets ahead of Thursday’s critical meeting.
  • Coming up: API’s Weekly Crude Oil Stock report. 

Crude oil prices started the week on the back foot with the barrel of West Texas Intermediate (WTI) erasing 8.75% on a daily basis to close at $26.28. With investors moving to the sidelines while trying to figure out if Thursday’s emergency OPEC+ meeting will lead to an output cut, the WTI is correcting Monday’s losses. As of writing, the WTI was up 2.7% on the day at $27.

OPEC headlines continue to drive oil prices

Earlier in the day, Reuters reported the output cuts by the OPEC and non-OPEC producers (OPEC+) on Thursday will be conditional on participation of other producers such as the US, Canada and Brazil. Commenting on the latest developments, “a supply side response is inevitable, although the chance of a coordinated global supply cut is low,” argued ANZ analysts. “We expect low prices and limited storage to force closures, primarily in North America and Europe.”

Meanwhile, Russia’s Energy Minister Novak said that he will be having a conversation with authorities in the state of Duma to discuss the situation in the oil market.

Later in the day, the American Petroleum Institue will publish its Weekly Crude Oil Stock report. Last week, the EIA reported that crude oil stocks in the US increased by 13.8 million barrels in the week ending March 27th.

Technical levels to watch for