Oil Gains, OPEC Continues To Discuss Cuts – 3 February, 2020

After crude fell to its lowest levels in a year due to demand concerns after the coronavirus outbreak, prices rose on Monday but remain 20% lower than they were at the beginning of 2020. Brent crude rose 21 cents or 0.4%  to $54.66 per barrel. U.S. West Texas Intermediate crude was 32 cents or 0.6% higher at $50.43 per barrel. Improved trading sentiment as well as an ongoing effort by OPEC and its allies to further cut supplies helped prices recover, with the unknown extent of the effects of the virus on the global economy being a major concern. OPEC has considered a further 500,000 barrel per day cut to the already proposed daily output reduction.