The oil market is feeling more bullish than ever, with growing potential of an extension to OPEC’s production cut deal has added fuel to the fire. Brent crude has sustained its $60 levels, with WTI increasing beyond $55 per barrel reaching highest in two years.

Sings of oil market tightening in the coming days can be seen from the oil futures market. The timing of oil market production cut extension is very crucial, as it coincides with the tightening of supplies.

Brent futures, the international benchmark for oil prices, were at$60.52 per barrel at 0540 GMT, up 3 cents from their last close. Brent has risen by more than a third since its 2017-lows last June.

U.S. West Texas Intermediate (WTI) crude was at $54.26 a barrel, down 4 cents from the last settlement, but still some 30 percent above its 2017-low in June.

Furthermore, OPEC anticipated an expansion of demand from Asia in coming years, eventually hitting 22 million barrels per day in 2040 up from 14.5 million bpd in 2016. Despite a strong hold of OPEC with respect to supply to the Asian markets, US Shale is slowly but surely taking away the share of the most lucrative market in the world.

OPEC needs to carefully price their products to compete with the changing supply side dynamics in the international markets.