Crude oil prices jump 6 per cent after biggest one-day fall since 1991

Oil prices jumped more than 6 per cent on Tuesday, clawing back some ground on hopes that a price war by top producers Saudi Arabia and Russia that sparked the biggest daily rout since the 1991 Gulf War will not be sustained.

US shale producers also rushed to deepen spending cuts and could reduce future production after OPEC’s decision to pump full bore into a global market hit by shrinking demand due to the coronavirus outbreak.

Brent crude futures rose $2.31, or 6.7 per cent, to $36.67 a barrel by 0115 GMT, while US West Texas Intermediate (WTI) crude gained $1.79, or 5.8 per cent, to $32.92 a barrel following declines of nearly 25 percent on Monday.