However, there are doubts the reduction will be enough as demand is unlikely to recover rapidly. FMTNews OPEC Oil
LONDON: Oil rose further above US$26 a barrel on Friday as Opec and its allies embarked on record output cuts to tackle a supply glut due to the coronavirus crisis that has been weighing on the market.
The Organization of Petroleum Exporting Countries, Russia and other producers, known as Opec+, has agreed to cut output by 9.7 million barrels per day from May 1. “The production cuts are finally kicking in,” said Craig Erlam, analyst at brokerage Oanda. “Prices are still extremely low though and the next two weeks will likely see extreme volatility return.”
“The demand recovery will be a muted affair,” said Stephen Brennock of oil broker PVM. “What’s more, Opec+ curbs which take effect today will be no panacea for the hefty supply imbalance.”
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