Oil prices have risen with hopes of decreasing production in oil-producing nations and stimuli from central banks. Officials intend these measures to offset the impact of the ongoing coronavirus outbreak.
According to Reuters, Brent crude was up $1.40 per barrel to $53.30, a rise of 2.7%. US West Texas Intermediate (WTI) futures jumped by $1.48, a 3.2% rise to $48.23 a barrel.
Earlier in the session, futures contracts rose by more than 3% .
The Organisation of the Petroleum Exporting Countries (OPEC) has proposed extending production cuts of 600,000bpd until Q2 2020. However, some members are pushing for deeper cuts to help raise oil prices.
The OPEC+ Group, consisting of OPEC members and allies such as Russia, is already cutting oil output by 1.7 million barrels per day. The prodction-limiting deal will run until the end of this month.
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French finance minister Bruno Le Maire said finance ministers from the G7 group of countries will hold a conference call to discuss the Covid-19 outbreak and its economic impact.
Meanwhile, the death toll from the virus has increased to more than 3,100 as of the end of 2 March.
The number of recoveries has increased to about 48,000, while the total of confirmed cases have passed 90,000.
OANDA market analyst Edward Moya told Al Jazeera: “The Russians have pretty much signaled that everyone is on board for OPEC+ delivering deeper production cuts.
“Crude’s price action possibly suggests a firm bottom is in place. As long as the coronavirus does not show strong signs that the spreading of the virus is intensifying, WTI crude could make a run towards the mid-$50s.”