Oil rose for a second day as the world’s top producers moved closer to a deal to curb output in an attempt to tackle the unparalleled impact of the coronavirus on demand.
Analysts expect cuts to reach 8.5 million barrels per day (mbpd) if a deal is reached, which will be huge but a far cry from the 35 mbpd in demand destruction, brought about by the pandemic.
Futures in New York rose 5.9 percent as Russia said it’s ready to cut production by 1.6 million barrels a day.
The OPEC+ meeting on Thursday will discuss curbing output by 10 million barrels a day, said Algeria’s energy minister, who holds OPEC’s rotating presidency.
Decisions at the online gathering will form the basis of Friday’s discussions on further contributions from G-20 nations, with U.S. involvement seen as the key.
Major producers are scrambling for a deal as energy consumption has plummeted and hammered prices. Oil demand in India has collapsed by as much as 70 percent and some American refineries face closure as consumption fell to the lowest in at least three decades.
Producers will need to agree on a deep and prolonged supply cut, or risk crude falling back again, analysts said.
