07.04.202010:20:00UTC+00Oil Prices Rebound On Output Cut Hopes

Oil prices rebounded on Tuesday amid hopes that the world's biggest producers of crude will agree to cut output at a meeting on Thursday.

Benchmark Brent crude rallied 2.7 percent to $33.95 a barrel, after falling over 3 percent in the previous session. U.S. crude futures were up 4.2 percent at $27.18, after having fallen nearly 8 percent on Monday.

As coronavirus ravages demand, the world's main oil producers including Saudi Arabia and Russia are expected to reach a deal this week to end their oil price war.

The group of oil producers known as OPEC+ are likely to agree to cut output on Thursday as long as the United States joins in cutting output, Reuters quoted three OPEC+ sources as saying.

U.S. President Donald Trump said on Monday that OPEC had not asked him to push domestic oil producers to cut their production to buttress prices. He also said that U.S. output was declining in response to falling prices.

Inventory data from the American Petroleum Institute will be out after the bell later today. Last week it reported a huge build of more than 10 million barrels.