Oil prices jumped more than $1 a barrel on Monday after major producers finally agreed their biggest-ever output cut, but gains were capped amid concern that it won’t be enough to head off oversupply with the coronavirus pandemic hammering demand. Still, demand concerns capped oil price gains. “After an initial positive reaction in oil prices, we expect the OPEC+ decision at best to establish a floor under the market,” BNP Paribas’ Harry Tchilinguirian said in a note, adding that oil price gains could also be capped by hedges from producers. “We do not expect a sustained recovery in the oil price until pent-up demand is released in Q3,” he said. The OPEC+ group met on Sunday to hammer out the agreement, resulting in an output cut four times deeper than the previous record reduction in 2008.

Source: The Standard April 13, 2020 07:18 UTC