09.04.202010:39:00UTC+00Oil Extends Gains Ahead Of OPEC+ Meeting

Oil prices rose sharply on Thursday to extend gains from the previous session as a key OPEC+ production conference gets underway later today to slash output and end a price war between Russia and Saudi Arabia.

Benchmark Brent crude for June delivery rallied 4.2 percent to $34.22 a barrel, after having risen 3 percent on Wednesday. West Texas Intermediate crude futures were up 6.4 percent at $26.70 a barrel, after having climbed 6.2 percent the previous day.

The meeting to discuss production cuts was earlier scheduled to take place on Monday, but got postponed to Thursday due to disagreements between some leading members.

According to reports, Saudi Arabia and Russia, the two countries which have been asked to cut output by U.S. President Donald Trump, want the U.S. also to reduce production.

The meeting, scheduled to be held via video conference amid the coronavirus pandemic, may result in daily cuts by members of the Organization of the Petroleum Exporting Countries and their allies of 8 million to 10 million barrels per day over 90 days.