By Barani Krishnan
Investing.com - Oil prices remained higher Tuesday after an emergency rate cut by the Federal Reserve boosted optimism among investors expecting stimulus for markets battered by the coronavirus epidemic.
Yet pressure was evident on crude ahead of an OPEC meeting that would decide on crucial production cuts.
West Texas Intermediate, the U.S. crude benchmark, was up 47 cents, or 1% at $47.22 per barrel by 12:56 PM ET (17:56 GMT). WTI rose 4.5% on Monday after a 16% drop last week, its biggest weekly fall since mid-December 2008.
Tuesday’s rebound came after the Fed cut the key U.S. lending rate cut by half a point ahead of its scheduled March 18 meeting.
Brent, the London-traded global benchmark for crude, was up 22 cents, or 0.4%, at $52.12. It rose 4.5% in the previous session.
Earlier on Tuesday, both WTI and Brent were up more than 1%.
OPEC’s 13 members open their regular twice-yearly meeting on Thursday before a special session on Friday with 10 producing allies led by Russia, who are collectively known as OPEC+.
Saudi Arabia, which dominates the group, is trying to push for an agreement to cut another 1 million barrels per day on top of 2.1 million bpd already agreed in December. Russia, whose cooperation is vital for a cut, hasn’t given the nod to the Saudis.