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Oil prices jump as focus swivels to OPEC, Russia meeting on output cuts

Published 04/08/2020, 08:49 AM
Updated 04/08/2020, 08:50 AM
© Reuters.
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SEOUL, April 8 (Reuters) - Oil climbed on Wednesday,
reversing most of the prior session's losses, as investors
pinned hopes on a Thursday meeting where OPEC members and allied
producers will discuss output cuts to shore up prices that have
tumbled amid the coronavirus pandemic.
Brent crude LCOc1 was up by 72 cents, or 2.3%, at $32.59
per barrel by 0044 GMT after falling 3.6% on Tuesday. U.S. West
Texas Intermediate (WTI) crude CLc1 rose $1.30, or 5.5%, to
$24.93 a barrel after dropping 9.4% in the previous session.
Thursday's meeting between members of the Organization of
Petroleum Exporting Countries (OPEC) and its allies, including
Russia, is widely expected to be more successful than their
gathering in early March. That ended in failure to extend cuts
and a price war between Saudi Arabia and Russia amid slumping
demand.
But doubts remain over the role of the United States in any
production curbs.
Saudi Arabia, OPEC member countries and Russia are likely to
agree to cut output, but that accord could be dependent on
whether the United States would go along with cuts. The U.S.
Department of Energy said on Tuesday that U.S. output is already
declining without government action. "Saudi Arabia and Russia continue to hammer out a deal ...
What is clear is that the United States must be involved," ANZ
Research said in a note.
U.S. crude production, meanwhile, is expected to slump by
470,000 bpd and demand is set to drop by about 1.3 million bpd
in 2020, the U.S. Energy Information Administration (EIA) said
on Tuesday.


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