Crude oil prices rebounded on Tuesday, one session after prices plummeted almost 25 percent.
West Texas Intermediate Crude oil futures for April rebounded $4.47 or 14.85 percent to $34.64 a barrel on Tuesday. A day earlier, crude fell all the way to $27.34 a barrel before recovering some lost ground to eventually settle at $31.13 a barrel, down $10.15 or 24.6 percent from the previous close.
The bottom dropped out of the oil market on Monday after Saudi Arabia threatened to flood the market following a spat with Russia over production cuts.
Saudi Arabia slashed its official prices by the most in at least 20 years over the weekend and signaled to buyers it would ramp up output. Meanwhile, Russia said its companies were free to pump as much as they could.
Saudi Arabia's move comes after OPEC and its allies failed to reach an agreement on additional production cuts last week. OPEC and allies had met in Vienna to consider a proposal to deepen production cuts, aiming to support oil prices.
But oil rebounded from their heavy losses as investors welcomed signs that policymakers would launch significant stimulus to combat the coronavirus outbreak.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2153254/
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