Oil surges as producers trim output to respond to demand loss - Reuters

Oil surges as producers trim output to respond to demand loss - Reuters:

Oil surged on Thursday amid signs that producers are cutting production to weather a collapse in demand as the coronavirus outbreak ravages world economies, while the U.S. state of Oklahoma also moved to help oil firms pump less.

Analysts warned the rise could be temporary as storage tanks fill around the world, but prices recovered ground as investors reassessed the resiliance of the world’s economy amid the global health emergency. 

Brent crude LCOc1 was up 99 cents, or 15%, at $21.36 a barrel by 0506 GMT after rising more than 5% on Wednesday.

U.S. West Texas Intermediate (WTI) futures were up 98 cents, or more than 7%, at $14.76 a barrel, having risen around a fifth in the previous session. U.S. crude futures fell to below minus $40 on Monday on concerns that buyers were running out of storage space to take deliveries.