Petroleum prices rose on Wednesday on expectations that major producers have moved closer to an agreement to enact deeper output cuts aimed at offsetting the slump in demand caused by the coronavirus outbreak.
Brent crude was up 74 cents, or 1.3%, to trade mid-morning Wednesday at $52.54 U.S. per barrel. U.S. West Texas Intermediate gained 98 cents, or 2%, to trade at $48.13 per barrel.
Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries are seeking to persuade Russia on Wednesday to join them in large additional oil output cuts to prop up prices which have tumbled because of the coronavirus outbreak.
A technical panel of several representatives from OPEC states, Russia and other producers recommended on Tuesday cutting output by as much as an extra 1 million barrels per day (bpd) during the second quarter only.
U.S. crude oil inventories rose in the last week or so, while gasoline and distillate stocks fell, data from industry group the American Petroleum Institute showed on Tuesday.
Crude inventories rose by 1.7 million barrels in the week to Feb. 28 to 446.6 million barrels, compared with analysts’ expectations for a build of 2.6 million barrels.
