Oil Rates Stabilize in Hope for Supply Reduction

Oil prices have stabilized on Friday and may show their first weekly increase in six weeks amid expectations that leading crude producers will further reduce production to offset the slowdown in Chinese  demand caused by the coronavirus pandemic.

Photo: Reuters

Brent crude futures with delivery in April grew by 0.20 percent, to $56,46 a barrel at 0851 GMT, while U.S. WTI light crude rose by 0.21 percent, to $51,53 per barrel on Friday.

Oil prices fell about 20 percent from the peak of 2020, which they reached on January 8, amid concerns about an market glut, coupled with concerns about a massive cut in fuel demand in China, as the quarantine in the country aimed to fight the coronavirus outbreak, slowed down economic activity.

In response to a demand decrease, the OPEC+ group is considering increasing production cuts to 2.3 million barrels per day.

Source: Reuters