Oil moves higher with impact of possible output cuts in focus

Oil rose after a two-day drop as investors weighed whether output cuts being discussed by the world’s top producers will be enough to offset the demand destruction wrought by the coronavirus.

Futures in New York climbed around 6% to near $25 a barrel after losing a sixth of their value over the previous two sessions. Saudi Arabia and Russia are hammering out an agreement that a delegate said will reduce global output by around 10 million barrels a day. That compares with OPEC’s estimate for demand to fall by 11.9 million barrels a day this quarter.

Some form of cooperation from the U.S., the world’s biggest producer, will be required, according to delegates involved in the talks. However, a drop in America’s crude output forecast released Tuesday could be enough to satisfy Riyadh and Moscow.