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Oil prices have edged down, erasing early gains, as the market is pressured by concerns that record output cuts would not be sufficient to restore market as the coronavirus outbreak shreds demand.
According to Reuters, Brent crude was down by $0.52 to $30.96 a barrel. In the previous session, the value stood at $33.99.
Meanwhile, US crude CLc1 fell by $0.12 at $22.64 a barrel.
Saudi Arabia, Kuwait and the United Arab Emirates (UAE) voluntarily announced to make cuts deeper than those agreed. This would bring OPEC+ supply down by 12.5 million bpd from existing levels, according to the Saudi energy minister.
US President Donald Trump said that the supply cut deal could save jobs in the US energy sector.
The OPEC+ group meeting held on 12 April resulted in a cut four times deeper than the previous record reduction which has been made in 2008.
OPEC+ has also wanted other major producers outside the group, such as the US, Brazil, Norway, and Canada to make a further cut of five million bpd.
Canada and Norway agreed to do so, while the US said that low prices mean its output would already fall by over two million bpd this year without the proposed cuts.
BNP Paribas community research head Harry Tchilinguirian told the news agency: “We expect the OPEC+ decision at best to establish a floor under the market.
“We do not expect a sustained recovery in the oil price until pent-up demand is released in Q3.”