International: Al Furat News: Oil prices witnessed a strong recovery in Asian trade on Tuesday, a day after its decline to its lowest level in 18 years, while strengthening the steps of decision makers to support the global economy affected by the emerging corona of investor confidence.
And Texas Intermediate rose by 7.3% to record 21.5 dollars a barrel, while Brent International benchmark crude increased by 3.3% to reach 23.5 dollars a barrel.
In New York on Monday, prices fell to their lowest levels since 2002, as West Texas Intermediate barrels fell below $ 20.
Oil markets fell at a time when the world's governments imposed complete isolation measures to prevent the spread of the virus, which caused a decrease in demand for crude.
About two-fifths of the world's population is now isolated in their homes, while the death toll from Covid-19 caused by the emerging corona virus has risen to more than 37,000, at a time when the epidemic is increasing dangerously in the United States.
The crisis worsened after the largest oil producers (Saudi Arabia and Russia) launched a price war that followed disputes over production cuts to support the energy markets affected by the virus.
In its latest steps to gain market share, Riyadh announced on Monday that it will increase its exports by 600,000 barrels per day to reach a record number of 10.6 million barrels per day in May.
But prices recorded a strong rebound on Tuesday, as investors took advantage of falling prices to buy at low prices amid a focus on measures unveiled by world governments to stimulate the global economy, including a trillion dollar package in the United States.
The markets also improved on the background of the contact that took place on Monday between US President Donald Trump and his Russian counterpart, Vladimir Putin, where they discussed oil prices.
Stephen Ennis of Axi Corporation, a pioneer in market strategies, said Trump's call may have been "an attempt to get Russia to sit at the negotiating table with Saudi Arabia or even (to think about the issue) easing sanctions on Moscow, as difficult times call for radical solutions."
He noted that any indication that Moscow and Riyadh would quit their differences would be positive, but added that the markets "do not depend entirely on the matter."
There have also been warnings that oil prices may fall further as the world's reservoirs approach their full capacity. is over