Oil Extends Gains in Hopes for Incentives and Deeper Cuts

Oil prices continue to advance on Tuesday, extending gains for the second day in a row on expectations that world’s central banks are likely to bent on financial incentives to offset the effects of the Chinese virus outbreak, and also due to boosted optimism regarding deeper crude production cuts that OPEC is likely to agree this week in the framework of the approaching meeting.

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International Brent crude benchmark grew by 2.76 percent, to $53,34 per barrel, while front-month WTI crude futures increased by 3.40 percent, to $49,34 per barrel at 1029 GMT.

G7 finance ministers are going to discuss also this week the best ways to mitigate the impact of the epidemic outbreak on economic growth, French finance minister Bruno Le Mayor said on Monday.

Recall, OPEC ministers are going to meet in Vienna to discuss Covid-19 threat to oil demand, planning to debate further 1 million bpd along with other options in order to stabilize prices. The OPEC representatives began to arrive to Vienna on Tuesday.

Source: Reuters