Visit our Covid-19 microsite for the latest coronavirus news, analysis and updates

Follow the latest updates of the coronavirus outbreak on our timeline.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Oil prices have increased as much as 1% from the previous session’s drop as hopes have risen for new output cuts to match a fall in demand.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia were planning to cut crude output due to impact on fuel demand from coronavirus outbreak.

According to Reuters, Brent crude futures were up $0.45 at $54.94 a barrel by 8:24am GMT. US West Texas Intermediate (WTI) crude was up $0.68 at $50.79 a barrel.

Citing people familiar with the matter, Reuters said that OPEC+ may cut crude output by a further 500,000 barrels per day (bpd).

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

CMC Markets analyst Margaret Yang was quoted by the news agency as saying: “A some half-a-million barrels (per day) cut is expected but we won’t rule out an even deeper cut should the situation worsen.

“This expectation boosted oil trading today.”

Investment bank UBS has also revised its oil demand growth estimate for 2020 down to 900,000bpd from 1Mbpd. It anticipates curbs in supply from OPEC+ until this year-end.

Reuters quoted Goldman Sachs as saying: “Oil prices are now at levels where we would expect a supply response from both OPEC and shale producers, and where China would likely seek to build crude inventories.”

The death toll from the virus has reached 427, including the one reported in the Philippines, and the number of cases of infection has increased to 20,623 as of the end of 3 February. This is an increase of 65 deaths from the day before.