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RPT-Oil rallies on hopes for unprecedented stockpile purchases

Published 04/15/2020, 09:26 AM
Updated 04/15/2020, 09:30 AM
© Reuters.
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(Repeats with no changes)
TOKYO, April 15 (Reuters) - Benchmark U.S. crude rose more
than 3% in early trade on Wednesday, recovering from a 10% slump
the previous session on hopes for purchases by consumer
countries for their strategic stockpiles on a scale not before
seen.
U.S. West Texas Intermediate (WTI) crude CLc1 futures were
up 3.43%, or 69 cents, at $20.80 at 2225 GMT, after having
crashed 10.3% on Tuesday on fears that a record global output
cut by producers would not offset plunging fuel demand hit by
the coronavirus pandemic.
The Organization of the Petroleum Exporting Countries, along
with Russia and other producing countries - a grouping known as
OPEC+ - partnered with other oil-pumping powerhouses including
the United States for an agreement set to remove a total of
around 19.5 million barrels per day (bpd) from the market.
Officials and sources from OPEC+ states indicated the
International Energy Agency (IEA), the energy watchdog for the
world's most industrialised nations, may announce purchases of
up to several million barrels to buoy the deal. The United States - the world's biggest oil producer but an
even bigger consumer - along with Japan and South Korea have
said they could buy oil to replenish reserves.
The U.S. Energy Department said on Tuesday it is negotiating
with nine energy companies to store about 23 million barrels of
domestically produced oil in its SPR, though such purchases
would seem far short of what some producer countries appear to
hope for.

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