SINGAPORE- Oil prices recuperated from previous drop and advanced 6% on Tuesday. However, analysts believed that there is very little margin for recovery from sharpest decline in nearly 30 years as Saudi Arabia and Russia are currently caught in a price dispute.
Oil prices’ upbeat activity was enforced by optimism for a settlement and possible US output reduction. But earnings could be capped as the slump in demand continues to persist due to economic implications of the novel coronavirus contagion.
Brent crude futures increased $2.36, equivalent to 6.9%, and were quoted at $36.72 per barrel at exactly 0307 GMT. US West Texas Intermediate (WTI) crude advanced $1.87, equivalent to 6%, and last stood at $33.00 per barrel.
The International Energy Agency said oil demand is likely to meet contraction this year. The agency reduced its yearly outlook and set oil contraction by 90,0000 bpd in 2020.