Oil prices rebound as traders await OPEC meeting

New York: Oil prices gained as market participants eagerly awaited a key meeting by the world’s major oil producers on output cuts.

On Wednesday, the West Texas Intermediate for May delivery rose US $1.46 to settle at $25.09 a barrel on the New York Mercantile Exchange, while Brent crude for June delivery was up US $0.97 to close at $32.84 a barrel on the London ICE Futures Exchange, reported Xinhua news agency.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies led by Russia, a group known as OPEC+, are expected to hold a video conference on Thursday to discuss oil production cuts.

The group’s failure to strike a deal on output cuts in Vienna last month had sent oil prices to a nosedive and sparked fears of a possible price war.

Wednesday’s rally came after a noticeable dip in the previous session as investors grew concerned over global supply glut.

The US Energy Information Administration on Tuesday forecast that the worldwide COVID-19 pandemic and increase of oil supply will keep global crude oil prices at multi-year low averages through the first half of 2020.

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