Brent crude rose on Wednesday after falling below $ 16 to the lowest level since 1999.
OPEC + adopted new oil production restrictions this month, but global measures to prevent the spread of the virus have pulled the demand down more steeply. The price decrease is also caused by economic reasons and lack of storage, however, production cuts to begin in May are expected to be beneficial.
U.S. futures fell deep into negative territory on Monday, closing at a record minus-$37.63 a barrel. Early on Wednesday, Brent touched its lowest level since June 1999.
On Wednesday Brent LCOc1 rose $1.04, or 5.4%, to settle at $20.37 a barrel. Earlier in the session, the global benchmark fell to $15.98, its lowest level since June 1999.
West Texas Intermediate (WTI) crude CLM0 futures for June delivery gained $2.21, or 19.1%, to settle at $13.78 a barrel.
This week, the craziest two days of oil trade took place in history. The US contract fell to the negative zone for the first time on Monday. It would be correct to be prepared for more surprises in this oil market.
As a recent surplus, the American Petroleum Institute reported on Tuesday that US raw inventories rose by 13.2 million barrels.
Although OPEC + has agreed to cut production by 9.7 million bpd from May this month, producers need to take further steps. Saudi Arabia said it is ready to take extra measures with other producers on Tuesday. Iraq made similar comments.
The USA and other countries have also indicated that they will support the decision taken by OPEC + and will make more efforts.