- Oil prices surged Friday, continuing gains from the best day on record Thursday.
- US West Texas Intermediate crude surged 12% to $28.50 per barrel Friday, while Brent crude jumped 15% to $34.33 per barrel.
- A Reuters report that OPEC and its allies will meet Monday to discuss a production cut amid the coronavirus pandemic fueled the gains.
- Watch oil trade live on Markets Insider.
- Read more on Business Insider.
Oil gained 12% Friday, extending gains from the best day on record Thursday, after OPEC and its allies said they will meet Monday to discuss a production cut amid the coronavirus pandemic, according to a Reuters.
US West Texas Intermediate crude surged 12% to $28.50 per barrel after gaining 25% Thursday. International benchmark Brent crude jumped 15% to $34.33 per barrel Friday, continuing the previous day’s 21% gain.
The cut could be around 10% of global supply, Reuters reported Monday, citing an OPEC source. The meeting to discuss a potential deal to curb production came after President Donald Trump told CNBC Thursday he expected Saudi Arabia and Russia to announce a deal to drastically cut oil production.
Oil prices have tanked during the coronavirus pandemic, which has drastically reduced demand as airlines cancel flights and people are encouraged to stay at home to slow the spread of COVID-19. In addition, a price war erupted between Saudi Arabia and Russia after the countries couldn’t agree on production cuts.
Both sides pledged to significantly increase oil output starting in April, which could've led to a global supply glut.
The energy sector has been hit hard by falling oil prices, threatening companies with high levels of debt. On Wednesday, US Shale producer Whiting Petroleum became the first to declare bankruptcy amid the coronavirus pandemic and oil price war.
Even with this week's gains, both WTI and Brent are down roughly 50% year-to-date.
