Oil advances as stimulus optimism, expected oil reduction counter virus impact
SEOUL- Oil prices soared for a second day on Tuesday as investors grew enthusiastic on expectations that central banks will implement financial stimulus to equalize the impact of coronavirus contagion. In line with this, markets grew upbeat on the hopes that OPEC will impose deeper output reduction.
Brent crude LCOc1 increased up to $1.48 a barrel, equivalent to 2.5%, and previously quoted at $53.18 per barrel at 0148 GMT. U.S. West Texas Intermediate (WTI) added $1.33, equivalent to 2.8%, and last stood at $48.07 per barrel.
Brent and WTI recuperated from a sharp 20% drop brought by signals that the coronavirus contagion heavily dragged oil demand. WTI gained a total of 7.9% while Brent contract increased up to 7.5% since Friday. The jump came to be the highest two-day increase of contracts after the decline of prices due to missile attacks on Saudi Arabian oil sites in September 2019.