Oil prices climb on prospects for deeper OPEC+ output cuts - Reuters

Oil prices climb on prospects for deeper OPEC+ output cuts - Reuters:

Oil prices edged higher on Thursday as investors hoped the world’s biggest producers would cut output more while they largely shrugged off forecasts of slumping demand due to the coronavirus outbreak in top oil importer China.

Brent crude LCOc1 ended the session up 55 cents, or 1%, at $56.34 a barrel while U.S. West Texas Intermediate (WTI) CLc1 settled up 25 cents, or 0.5%, at $51.42 a barrel.

The Organization of the Petroleum Exporting Countries lowered its 2020 demand forecast for its crude by 200,000 bpd, prompting expectations the producer group and its allies, known as OPEC+, could cut output further.

“The Russians have pretty much signaled that everyone is on board for OPEC+ delivering deeper production cuts,” said Edward Moya, senior market analyst at OANDA in New York. “Crude’s price action possibly suggests a firm bottom is in place. As long as the coronavirus does not show strong signs that the spreading of the virus is intensifying, WTI crude could make a run towards the mid-$50s.”