Oil jumps more than 4% as Corona fears recede in hopes of OPEC cuts and stimulus from central banks
Economy News _ Baghdad
Oil prices jumped more than 4%, after falling in early trading to their lowest levels in several years, with concern about the damage on demand diminishing from the outbreak of the Corona virus in front of a more severe reduction in production from OPEC and monetary stimulus from central banks.
Brent contracts ended the session higher by $ 2.23, or 4.5 percent, to settle at the settlement of $ 51.90 a barrel. Earlier in the session, the global benchmark crude tumbled to its lowest level since July 2017 at $ 48.40.
US benchmark West Texas Intermediate crude futures rose $ 1.99, or 4.45 percent, to settle at $ 46.75 a barrel, after falling during the session to the lowest level since December 2018 at $ 43.32.
These are the first gains for both of the two benchmarks after six consecutive sessions of losses raised by fears of the Coronavirus, which has killed nearly three thousand people and shocked global markets.
Global stock markets stabilized today after recording the most severe losses last week since the financial crisis in 2018.
A Reuters survey showed that OPEC oil production fell in February to the lowest level in more than ten years, with the collapse of supplies from Libya due to the closure of ports and oil fields, and Saudi Arabia and other Gulf members to reduce more than required under a new agreement to limit production.
Oil prices have tumbled by more than 20 percent since the start of the year despite OPEC + production cut by 1.7 million barrels per day under an agreement that will last until the end of March.