On Tuesday, oil prices are rising on signals that the spread of COVID-19 coronavirus infection in the US and Europe may be starting to slow, Dow Jones reports.
Market participants are waiting for the meeting of OPEC+ States, and some traders probably stepped up purchases, expecting that oil-producing countries will have to cut production, experts say AxiCorp. However, AxiCorp believes that the lack of positive news from OPEC and their allies will limit the market’s rise.
The price of June Brent crude futures on the London ICE Futures exchange was $34.03 per barrel by 8:00 Moscow time, which is $0.98 (2.97%) higher than the closing price of the previous session. At the end of trading on Monday, futures fell in price by $1.06 (3.1%), to $33.05 per barrel, INTERFAX reports.
WTI crude futures for May on the New York Mercantile exchange (NYMEX) were up $0.87 (3.34%) to $26.95 per barrel by this time. By the close of previous trading, the contract price was $26.08 per barrel, down $2.26 (8%) compared to the previous session.
On Monday, oil prices fell amid the postponement of an emergency meeting of OPEC+ States, which was planned to discuss steps to stabilize the market.
The conference call was rescheduled from April 6 to Thursday, April 9.
“The pressure on the market is too great for OPEC+ to afford not to cut production,” says the Price Futures Group’s Phil Flynn.
Restrictions imposed around the world to contain the spread of COVID-19 coronavirus infection have led to a sharp drop in oil demand, and an oversupply in the oil market may soon lead to producers facing a shortage of oil storage capacity. This increases the need for urgent measures to limit supply, analysts say. Source: Nebit-Gaz