Oil Prices Surge as OPEC+ States Hold Videocall on Stabilisation of Coronavirus-Hit Oil Market

© REUTERS / Nick OxfordPump jacks operate in front of a drilling rig in an oil field in Midland, Texas U.S. August 22, 2018. Picture taken August 22, 2018.
Pump jacks operate in front of a drilling rig in an oil field in Midland, Texas U.S. August 22, 2018. Picture taken August 22, 2018. - Sputnik International
Oil prices fell on global markets in early March after OPEC+ members failed to agree on an extension to the agreement beyond 1 April against a backdrop of the coronavirus pandemic.

Oil prices have reported a dramatic surge during the meeting of OPEC+ members, according to trading data.  The June futures for Brent oil have jumped to $35.65 per barrel, rising by 8.56%, as of 17:39 Moscow time. Meanwhile, WTI futures for May rose by 9.8% to $27.55 per barrel.

Brent previously passed the $36,29 per barrel mark on 2 April following President Trump's statement on oil production cuts.

The surge comes as the OPEC+ countries and oil producers that were not previously part of the deal began their video conference on the oil market, a source in one of the delegations revealed.

OPEC. (File) - Sputnik International
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Apart from OPEC+, Argentina, Egypt, Indonesia, Trinidad and Tobago confirmed their participation.

The oil producers will reportedly debate oil cuts of up to 20 million barrels per day, Reuters cited an OPEC source and a Russian source as saying.

Other sources told Reuters that Russia and Saudi Arabia had managed to overcome their main differences on agreeing a new deal on oil cuts.

Earlier in the day, OPEC+ countries announced they would discuss the creation of a new agreement to reduce oil production with the possible participation of other major oil producing states to stabilize the situation on the market.

Prior to the conference, US Energy Secretary Dan Brouilette said in an interview that the United States is optimistic that Russia and Saudi Arabia will reach a successful agreement to stabilise global oil prices.

OPEC+ Deal Failure

In March, OPEC+ countries were unable to bridge their differences on the need to further slash oil production amid the coronavirus pandemic.

U.S. President Donald Trump answers a question during the daily coronavirus task force briefing at the White House in Washington, U.S., April 4, 2020 - Sputnik International
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Restrictions were removed as the deal fell through, which prompted a collapse in the market, in addition to a global drop in demand driven by the coronavirus crisis.

Russia suggested leaving output cuts at the same levels, while Saudi Arabia and its allies pushed for additional cuts.

Russia rejected the Saudi proposal, prompting Riyadh to abandon the originally agreed cuts and announced a 25 percent increase in production.

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