Oil prices have increased on hopes that the world’s major crude producers will overcome obstacles at a meeting later today, in response to a collapse in global crude demand.

According to Reuters, Brent crude rose by $1.22 to $34.06 a barrel. In the previous session, the value stood at $34.08.

Meanwhile, US crude CLc1 was up by $1.2 at $26.29 a barrel.

Data released by the US Energy Information Administration (EIA) highlighted an increase in crude stocks by 15.2 million barrels last week due to a slump in fuel demand.

This is the biggest weekly rise ever, reported Reuters.

The Organization of the Petroleum Exporting Countries (OPEC) and OPEC+ group are set to hold a virtual meeting today.

After Russia reportedly announced it was ready to reduce its output by 1.6Mbpd, hopes of a deal to cut 10Mbpd to 15Mpd increased.

Algeria’s energy minister statement on expecting a fruitful meeting also added more hopes.

Supply cuts of the expected volume would be far bigger than any OPEC has agreed before, but Russia has stressed it will only reduce output if the US joins the deal in doing its share.

Rystad Energy Oil Markets head Bjornar Tonhaugen said: “Even if a production-cut agreement is reached, which will surely give prices a short-term boost, we believe the enthusiasm will subside at some point and the reality of the size of the demand imbalance will eventually hit the market.”