Singapore (AFP)

Crude prices started to rise again Wednesday, on the eve of a crucial meeting of oil producing countries to reduce production, which gives hope to players in a market weakened by the coronavirus crisis.

WTI's US barrel for May delivery jumped 5.46% to 24.92 dollars around 3:30 GMT.

The price of a barrel of Brent North Sea crude for June delivery rose 2.29% to $ 32.60.

Prices are also being carried by brokers on the lookout for good deals after a sharp drop in prices on Tuesday, analysts said.

Members of the Organization of the Petroleum Exporting Countries (OPEC) and their allies, including Russia, will meet on teleconference Thursday to decide on a possible reduction in their extractions, at a time when the market is flooded with crude.

Prices had hit an 18-year low last week as a result of a price war between Saudi Arabia and Russia. Failing to obtain an agreement on the strategy to adopt to support prices, Saudi Arabia opened the floodgates of its production and caused prices to unscrew in the hope of causing Russia to falter.

At the same time, the coronavirus crisis and the drastic measures to restrict movement put in place by the states are paralyzing economic activity over a large part of the globe and have caused demand to melt.

The financial sector hopes that Ryad and Moscow, who are participating in this week's meeting, will agree to end their dispute and reduce their production.

A reduction of 10 million barrels a day is being considered by OPEC members and their allies, according to Stephen Innes, head of global market strategy at AxiCorp. But this volume may not be enough to drive up oil prices, which have been dragged down by the economic crisis.

"With millions of jobs and the stability of the global economy at stake, some have to compromise, otherwise the sector will suffer serious damage," he warned.

Eyes are also turning to the United States, a key producer of shale gas, whose partners expect participation in the production cuts.

Some analysts believe that the drop in the crude oil production forecast published on Tuesday by the United States could satisfy Ryad and Moscow.

The U.S. Energy Information Agency (EIA) has forecasted an average production of 11.76 million barrels per day in 2020, up from 12.99 million previously forecast, according to Bloomberg News.

© 2020 AFP