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Oil Futures Rise on Hopes for OPEC Deeper Cuts

Oil crude futures grow on Thursday for the second straight day amid markets optimism over controversial reports of possible success in combating the outbreak of coronavirus in China, indicating a potential recovery in demand from the world’s biggest oil importer.

oil rates growPhoto: Flickr

The April futures for Brent oil grew by 0.81 percent, to $55,73 per barrel, while WTI front-month futures soared by 1.36 percent, to $51,41 per barrel at 0939 GMT.

Meantime, OPEC and its allies are discussing deeper oil production cuts by another 500,000 barrels per day, as coronavirus fast spread deteriorated already the fuel demand, according to two OPEC sources and an industry source familiar with the issue.

The OPEC+ plans to meet in Vienna on Thursday to discuss possible additional reductions in production, as worries about economic growth and energy demand, which were caused by virus outbreak, are looming.

U.S. oil reserves grew by 3.4 million barrels for the week, which ended on January 31, to reach 431.7 million barrels, the Energy Information Administration (EIA) said on Wednesday.

Source: Reuters