US, WASHINGTON (ORDO NEWS) — Brent crude futures wiped out losses in Asian trading, rising in early European trade above $ 30 a barrel, as hopes for a major global deal to cut supplies to support prices remain.
Brent futures rose seven percent, or $ 2.10, to $ 32.04 a barrel by 0748 GMT. Brent jumped 47 percent during Thursday’s session, recording the highest percentage increase during a session ever, before closing up 21 percent, but it is still down by less than half the price of $ 66 in trading at the end of 2019.
US West Texas Intermediate crude futures rose 1 percent, or 28 cents, to $ 25.6 a barrel, after jumping 24.7 percent on Thursday.
On Thursday, US President Donald Trump said he had brokered a deal in which Russia and Saudi Arabia could cut production by between 10 million and 15 million barrels per day – an unprecedented figure that represents 10 to 15 percent of global supply. Trump said he had not offered to cut US production.
On Thursday, Saudi Arabia called for an emergency meeting between OPEC and non-OPEC producers, saying it was aiming to reach a fair deal to stabilize oil markets.
On Friday, Kuwaiti Oil Minister Khalid al-Fadil said he supported Saudi Arabia’s call for a meeting between OPEC and non-OPEC producers.
The Russian Information Agency reported that the Energy Ministry of Azerbaijan, which is not a member of OPEC, said that the OPEC + meeting is scheduled to be held on April 6 via closed circuit television.
“It seems that there is a recent collective acceptance that the market is in an exceptional state of excess supply that needs to be coordinated action,” said Calum McPherson, head of commodities at Investec.
UBS analysts say they are skeptical that producers can reliably pledge big cuts and expect prices to come under pressure again.
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