Oil prices rebound, fuelled by hopes for OPEC+ supply cuts | The Business Standard
Skip to main content
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
    • GOVT. Ad
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
The Business Standard

Tuesday
May 30, 2023

Sign In
Subscribe
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
    • GOVT. Ad
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
TUESDAY, MAY 30, 2023
Oil prices rebound, fuelled by hopes for OPEC+ supply cuts

Global Economy

Reuters
04 February, 2020, 09:00 am
Last modified: 04 February, 2020, 02:02 pm

Related News

  • Oil ticks up amid OPEC+ supply cut uncertainty
  • The world's oil map is being redrawn by rising Russian flows to Asia
  • The oil market's real weakness is supply, not demand
  • Oil dips on demand worries after unexpected US crude build
  • Oil falls on higher US oil stocks, inflation data in focus

Oil prices rebound, fuelled by hopes for OPEC+ supply cuts

Despite Tuesday's gains, an extended slide over the last two weeks means prices are still close to 20% lower than this year's peak on January 8

Reuters
04 February, 2020, 09:00 am
Last modified: 04 February, 2020, 02:02 pm
Pump jacks operate in front of a drilling rig in an oil field in Midland, Texas US August 22, 2018. Picture taken August 22, 2018/ Reuters
Pump jacks operate in front of a drilling rig in an oil field in Midland, Texas US August 22, 2018. Picture taken August 22, 2018/ Reuters

Oil prices clawed back ground on Tuesday, rising 1% after the previous session's slump, amid hopes for new production curbs by OPEC and its allies to offset any drop in future fuel demand that might be triggered by China's coronavirus outbreak.

Brent crude was at $54.93 a barrel by 0615 GMT, up 48 cents, or nearly 0.9%, while US West Texas Intermediate (WTI) crude was up 57 cents, or over 1%, at $50.68 a barrel.

Despite Tuesday's gains, an extended slide over the last two weeks on concern over the global economic impact of the coronavirus means prices are still close to 20% lower than this year's peak on January 8. Monday's drop left crude prices at their lowest in more than a year.

People familiar with the matter told Reuters on Monday that the Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, known as OPEC+, were considering cutting crude output by a further 500,000 barrels per day (bpd) due to the impact on demand from the coronavirus.

"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," said Margaret Yang, analyst at CMC Markets. "This expectation boosted oil trading today."

Despite the return to calmer trading, mirroring other financial markets on Tuesday, Goldman Sachs warned that while it sees oil producers responding to the situation by cutting supply, the coronavirus outbreak's impact on demand is likely to keep volatility in spot prices elevated.

The coronavirus has now claimed more than 420 lives in China and resulted in deaths in the Philippines and Hong Kong.

"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," Goldman said in a note.

Still, other warned that any failure by OPEC+ to take what investors deem suitably robust action to limit the impact of the virus on oil markets could trigger further price drops.

"If OPEC+ fails to deliver an emergency response to the coronavirus, crude prices could slump another 10%," said Edward Moya, market analyst at OANDA, in an email to Reuters.

Even if supply cuts are imposed, Moya warned, their impact could be outstripped by the virus.

"Expectations are growing that Saudi Arabia will do whatever it takes to make sure the oil producing alliance delivers deeper cuts," he said, "but it might not matter if the virus shows no sign of easing."

World+Biz / Top News

Oil Business / oil market / Oil

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Priority on fighting inflation, funding projects
    Priority on fighting inflation, funding projects
  • Private credit growth hits 13-month low in April
    Private credit growth hits 13-month low in April
  • DSA may scare away potential investors: UN special rapporteur
    DSA may scare away potential investors: UN special rapporteur

MOST VIEWED

  • FILE PHOTO: A man wearing a protective mask walks past the Bombay Stock Exchange (BSE) building in Mumbai, India, March 13, 2020. REUTERS/Francis Mascarenhas
    Record-bound Indian stocks reclaim spot in world's top 5 markets
  • Represenattional image. Photo: Collected
    Gold prices slip on US debt limit deal, Fed rate-hike bets
  • Oil rises after US leaders strike provisional debt deal
    Oil rises after US leaders strike provisional debt deal
  • The US Capitol building is pictured in Washington, US, January 26, 2022. REUTERS/Joshua Roberts/File Photo
    Biden, McCarthy forge debt deal in bid to avert US default
  • U.S. President Joe Biden hosts debt limit talks with House Speaker Kevin McCarthy (R-CA) in the Oval Office at the White House in Washington, U.S., May 22, 2023. REUTERS/Leah Millis
    Biden, McCarthy reach tentative US debt ceiling deal
  • People shop at a grocery market, in London, Britain May 6, 2023. REUTERS/Emilie Madi
    Brexit to blame for a third of Britain's food bill rise

Related News

  • Oil ticks up amid OPEC+ supply cut uncertainty
  • The world's oil map is being redrawn by rising Russian flows to Asia
  • The oil market's real weakness is supply, not demand
  • Oil dips on demand worries after unexpected US crude build
  • Oil falls on higher US oil stocks, inflation data in focus

Features

An exquisite symphony of flavours awaits in the heart of Old Dhaka, as this vegetarian ensemble takes centre stage, showcasing the rich heritage of traditional cuisine. Photo: Noor-A-Alam

Jagannath Bhojonaloy: Vegetarianism, the traditional way

17h | Food
Inside Airbus's mega plan to develop the aviation ecosystem in Bangladesh

Inside Airbus's mega plan to develop the aviation ecosystem in Bangladesh

19h | Panorama
How women's purchasing power is altering market dynamics

How women's purchasing power is altering market dynamics

18h | Panorama
Media companies are rushing to capture the youngest market of news consumers in the misplaced hope that this will ensure their survival. Photo: Bloomberg

News firms are too obsessed with wooing the young

18h | Panorama

More Videos from TBS

Erdogan prevails in election test

Erdogan prevails in election test

10h | TBS World
Why AB turns its focus on agri from corporate lending?

Why AB turns its focus on agri from corporate lending?

12h | Corporate Talks
Sword of Tipu Sultan sold in auction

Sword of Tipu Sultan sold in auction

13h | TBS World
Who will be the champion if rain washes out reserve day?

Who will be the champion if rain washes out reserve day?

13h | TBS SPORTS

Most Read

1
End of zero tax!
NBR

End of zero tax!

2
Photo: TBS
Energy

Wind power feeds national grid for first time Friday

3
File Photo: Mohammad Minhaj Uddin/TBS
Bangladesh

Low-cost housing planned for 4 lakh Bangabandhu Shilpa Nagar workers

4
Cenbank prints Tk70,000cr new money in 11 months to support nat'l budget
Budget

Cenbank prints Tk70,000cr new money in 11 months to support nat'l budget

5
File Photo: UNB
Bangladesh

US govt's new visa policy does not bother Bangladesh government: Shahriar Alam

6
Govt to double gain tax on land, flat registration
Budget

Govt to double gain tax on land, flat registration

EMAIL US
[email protected]
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2023
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - [email protected]

For advertisement- [email protected]