WASHINGTON (dpa-AFX) - Oil prices rose sharply on Tuesday to extend gains from the previous session in the wake of signals of support from the Federal Reserve, Bank of Japan, Bank of England and European Central Bank.
In addition, traders are also pinning hopes that the Organization of the Petroleum Exporting Countries and its allies will significantly cut crude production this week.
Benchmark Brent crude jumped 2.65 percent to $53.27 per barrel, while U.S. West Texas Intermediate (WTI) futures were up as much as 3.1 percent at $48.20 a barrel.
Expectations for global coordinated monetary policy stimulus are driving a rebound in risk sentiment after the European Central Bank joined its U.S. and Japanese peers in indicating that it stands ready to take 'appropriate and targeted measures' to fight the economic impact of coronavirus.
Japanese Prime Minister Shinzo Abe said today his government was ready to deploy further fiscal stimulus measures if needed.
Australia's central bank today cut interest rates to a record low 0.5 percent to help cushion the economic damage from the coronavirus outbreak.
As fears of a global recession mount, finance ministers and central bank governors of the G7 major economies are expected to issue a statement later today pledging to work together to mitigate the damage to their economies from the fast-spreading epidemic.
The OPEC and its allies are scheduled to meet this Thursday and Friday in Vienna. Media reports suggest that they are mulling a bigger oil output cut of possibly 1 million barrels per day to counter lingering worries about damage to demand.
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