Oil hits three-month high over hopes for output cuts

Oil hits three-month high over hopes for output cuts

03 Jun 2020 09:45 AM
 

Oil rose on Wednesday to a near three-month high amid optimism that major producers will extend production cuts as the world recovers from the coronavirus pandemic.

Brent crude was up 22 cents, or 0.6%, at $39.79, by 5:33 am, the highest since March 6, having gained 3.3% on Tuesday.

U.S. West Texas Intermediate crude (WTI)  gained 33 cents, or 0.9%, at $37.14, also the highest since March 6. The contract ended the previous session up 3.9%.

Both benchmarks have risen sharply in recent weeks from the lows of April, buoyed by a continuing recovery in China, the epicenter of the virus outbreak, while other economies are slowly opening up after lockdowns to contain its spread.

 The Organization of the Petroleum Exporting Countries and others including Russia may extend production cuts of 9.7 million barrels per day (bpd), or about 10% of global output, into July or August, sources told Reuters.