REUTERS / Lee Celano
- Oil prices remain close to the 2002 level as demand due to the coronavirus pandemic outweighs OPEC's historic production cuts.
- The US West Texas Intermediate Futures rose 3.3% on Thursday to $ 20.53 a barrel. Brent crude rose 4.7% to hit $ 29 a barrel at intraday highs.
- Forecasts for continued weak demand show that the production cuts agreed by OPEC may not be enough to support raw material prices.
- Watch oil trading live on Markets Insider.
Oil is hovering near its lowest prices since 2002 as demand due to the coronavirus pandemic overshadows OPEC's historic production cuts.
The US West Texas Intermediate Futures rose 3.3% on Thursday to $ 20.53 a barrel. The international benchmark Brent crude rose 4.7% to hit $ 29 a barrel on intraday highs.
Both commodities posted gains around noon in New York, with WTI up around 1% and Brent up 1.2%.
Oil prices struggled to recover significantly after the International Energy Agency forecast on Wednesday that global demand would drop by up to 9.3 million barrels a day this year. In April, global oil demand drops by up to 29 million barrels a day, according to the IEA, due to the coronavirus pandemic that has stopped global travel.
The recent cut in production agreed by OPEC may not be enough to meet the demand for craters caused by the coronavirus crisis. At the weekend, the group agreed to cut oil production by 9.7 million barrels a day.
Oil prices fell this year, burdened by the coronavirus pandemic and the OPEC price war that broke out during the outbreak. The WTI in the U.S. has dropped 67% since the beginning of the year, while Brent crude oil prices fell 55% in 2020.
(tagsToTranslate) Oil (t) Oil Prices (t) WTI (t) wti Crude Oil Price (t) US West Texas Intermediate (t) Brent Crude Oil (t) Brent Crude Oil Price (t) Coronavirus (t) Coronavirus Pandemic (t) t) OPEC (t) OPEC Deal (t) Opec Production (t) Organization by Petroleu