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Oil Clinches Gain After OPEC+ Committee Recommends Supply Cut

  • OPEC+ JTC suggests 600,000-1 million barrel-a-day reduction
  • Goldman Sachs, Morgan Stanley cut oil demand growth forecasts
Iran's Salman Oil Field Ahead Of U.S. Sanctions
Photographer: Ali Mohammadi/Bloomberg
Updated on

Oil advanced for a second day after an OPEC+ committee recommended a larger supply cut to offset lost demand from the spread of the coronavirus.

Crude futures rose 0.9% in New York on Tuesday. Ahead of OPEC meetings later this week, the group’s Joint Technical Committee recommended an output cut of 600,000 to 1 million barrels a day. The proposal helped insulate oil from a broader market decline that followed an emergency rate cut by the U.S. Federal Reserve, which investors worried wouldn’t be enough to thwart the economic impacts of the virus.