oil won on Wednesday hoping that Saudi Arabia and Russia would soon agree to a historic cut in production and cut supply as a demand crater amid the coronavirus pandemic.
US West Texas Intermediate Crude Oil The rise rose 12% on Wednesday to $ 26.45 a barrel before some of these gains were reduced to trade around 8% higher. International benchmark Brent crude oil rose nearly 4% the same day to $ 33.87 a barrel.
Oil prices have dropped with demand in the face of the corona virus pandemic, which has resulted in non-essential travel around the world being canceled. At the same time, a price war between OPEC and Russia threatened to bring the offer to record levels.
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The US Energy Information Administration on Tuesday has shortened its outlook for 2020 and said it would be one again Net importer of oil This could pave the way for a global agreement to reduce oil production.
Now all eyes are on OPEC and its allies as they work on the details of a historic production cut plan. The group will meet practically on Thursday and Friday and is reportedly considering reducing production Bloomberg, citing one delegate, reported up to 10 million barrels a day or more.
The meeting was originally scheduled to take place on Monday, but was postponed as the dispute between Russia and Saudi Arabia intensified. Reuters reported.
Nevertheless, Russia is skeptical of the United States' participation in the deal, as the proposed decline in production is driven by market forces. Bloomberg reported on Wednesday.
Despite the recent growth Oil has dropped more than 50% since the beginning of the year.