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InstaForex - Official partner of Dragon Racing

2020.02.0609:37:00UTC+00Oil Prices Rise On Optimism Over Potential Output Cuts

Oil prices rose on Thursday to extend gains from the previous session after reports suggested that OPEC and its producer allies are considering further output cuts to offset the negative impact on oil demand from the coronavirus outbreak.

Benchmark Brent crude edged up 0.25 percent to $55.41 a barrel, after having jumped as much as 2.4 percent on Wednesday.

West Texas Intermediate (WTI) futures climbed 1.1 percent to $51.31 a barrel, after having risen 2.3 percent in the previous session.

Unconfirmed reports of possible advances in combating the coronavirus outbreak in China also offered some support.

World Health Organization officials, however, damped down expectations of imminent breakthroughs in the development of vaccines or treatments for the virus outbreak that has claimed more than 563 lives and sparked fears of an economic slowdown in China.

Meanwhile, China said it would slash tariffs on $75 billion of U.S. imports in half as part of its efforts to implement a recently signed trade deal.

China's finance ministry said that from 14 February it would lower tariffs on some U.S. goods from 10 percent to five percent and on others from five percent to 2.5 percent.

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