Oil prices up 2% after output cut, but demand worries weigh
NEW YORK: Oil prices gained 2% on Monday following a record deal among oil producers to cut the rapid rise in supply, a muted impact on the market as the coronavirus pandemic hammers demand.
The Organization of the Petroleum Exporting Countries, along with Russia and other countries – known as OPEC+ – agreed at the weekend to cut output by 9.7 million barrels per day (bpd) in May and June, representing about 10% of global supply.
In addition, several other countries will reduce output as well, in an estimated total cut of about 19.5 million bpd.
Brent futures rose 63 cents, or 2.0%, to $32.11 a barrel by 12:36 p.m. EDT (1636 GMT), while U.S. West Texas Intermediate (WTI) crude rose 42 cents, or 1.9%, to $23.18.
