money and business
Oil prices rose today after Russia said it backed a recommendation for “OPEC” countries and other producers to reduce their supplies further amid declining demand for crude, at a time when China is fighting the “Corona” outbreak.
By 05:47 GMT, Brent contracts traded, up 24 cents to 55.17 dollars a barrel, but it is heading to incur losses for the fifth consecutive week in light of continuing concerns about the impact of the Corona virus on the growth of the international economy.
And increased US crude contracts, “West Texas Intermediate” by 15 cents, recording 51.10 dollars a barrel, and is also heading towards losses for the fifth week in a row.
Prices had fallen earlier in the session after the Chinese central bank governor said that the second largest economy in the world may go through disruptions during the first quarter of the year, while China announced a major jump in the number of confirmed cases of the virus among thousands of tourists prevented from leaving a ship Trips off its coast.
And the technical committee of the “OPEC +” coalition, which includes a group of countries from inside and outside the “OPEC”, proposed a temporary production cut of 600 thousand barrels per day, according to three sources told “Reuters” Thursday.
“We support this idea,” Russian Foreign Minister Sergei Lavrov said when asked about this proposal during a press conference in Mexico City.
And the group “OPEC +”, which pumps more than 40% of the world’s oil, reduces its oil production since the beginning of this year by about 1.7 million barrels per day, which constitutes about 2% of global demand.
“The OPEC + reductions are supportive of prices in the near term, but we still face uncertainty regarding the timing and speed of resumption of Chinese activities after the Chinese New Year,” commented Lakhlan Xu, head of commodities research at the National Bank of Australia in Melbourne.