Oil Rallies As Deal Takes Shape Before Key Meeting
Fahad Shabbir (@FahadShabbir) Published April 09, 2020 | 10:00 AM
Singapore, April 9 (UrduPoint / Pakistan Point News - 9th Apr, 2020 ) :Oil prices extended gains Thursday after Russia signalled it was ready to cut output before a key producers' meeting aimed at boosting energy markets as the coronavirus pandemic strangles demand.
US benchmark West Texas Intermediate rose 4.6 percent to $26.26 a barrel, while Brent crude, the international benchmark, jumped 2.7 percent to $33.73.
Oil exporting group OPEC, led by top producer Saudi Arabia, and others -- including Russia -- will meet via video conference later Thursday and expectations are growing they will agree to reduce output to support prices.
Prices are at near-two-decade lows with travel restrictions and lockdowns around the world throttling demand, and Riyadh and Moscow locked in a vicious price war.
But Saudi Arabia and Russia, the world's second-biggest producer, now look set to draw a line under their dispute to help stabilise battered markets.
Moscow said Wednesday it is willing to cut output by about 1.
6 million barrels a day, or about 15 percent, Bloomberg news reported, smoothing the path towards a deal.
A key question had been whether the US would join any deal, but analysts say a fall in America's crude output forecast released earlier this week is likely enough to satisfy Riyadh and Moscow for now.
Another key meeting takes place Friday, when G20 energy ministers hold talks remotely to discuss steps to steady the market.
Still, analysts caution that the devil will be in the detail, and an output cut deemed too small could send prices down even further.
A cut of just 10 million barrels a day "might not trigger much of rally and probably eventually see selling pressure drive crude back to the low-mid $20s", said Edward Moya, senior market analyst with OANDA.
He also cautioned that a "turn for the worse could happen" which derails a deal, adding that "the following 24 hours will be critical for global oil prices".
Recent Stories
Terrorists of Shangla suicide attack will be brought to justice: Interior Minist ..
Applications Open for 6th Cycle of Start-up Incubation under the National Expans ..
Join vivo's "Light it Up" Social Media Contest in Ramadan to Win vivo V30 5G
Pakistan v New Zealand T20I series: Tickets to go on sale from today
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 29 March 2024
Today Gold Rate in Pakistan 29 March 2024
Journalists call for global action to end Gaza’s humanitarian crisis
CM for generating opportunities to bring direct int'l investment
Pakistan retains position in FTSE secondary emerging market
High Commissioner of Malaysia hosts Iftar dinner reception
NEPRA announces 2nd quarterly adjustment in power bills with Rs 1.68 cut per uni ..
Hoopo Inc. Collaborates with SAU to Install Solar-Powered RO Plant
More Stories From Miscellaneous
-
Shaheed Jalil Andrabi remembered on his martyrdom anniversary
2 days ago -
Architectural grandeur of Mohabat Khan Mosque attracts visitors, archeology lovers
2 days ago -
Besant Hall cultural centre to hold programme in memory Pir Hassam din Rashdi
4 days ago -
USA beats Mexico 2-0 for CONCACAF Nations League title
4 days ago -
World urged to intervene for peace in Kashmir
5 days ago -
Undeterred resolve – only way to end economic woes
5 days ago
-
Organic Food: A booming trend in Khyber Pakhtunkhwa
5 days ago -
From Soil to Harvest: Use of modern technology vital for agricultural renaissance
5 days ago -
Spring season offers glimpse into GB's natural beauty, cultural heritage
5 days ago -
Nation to mark decades’ long journey of resilience through annals of history
7 days ago -
23rd March: A historic day reminds Muslims’ heroic struggle for Pakistan
7 days ago -
Measures urged to recharge depleting water table: Experts
7 days ago