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Oil Surrenders to Demand Loss Despite Historic OPEC+ Output Cuts

  • OPEC, allies to reduce output; Saudi Aramco cuts Asia pricing
  • Brent edges higher after surging 8% in early trading
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WATCH: John Paisie, president of Stratas Advisors, discusses how the agreement will affect affect prices and demand.(Source: Bloomberg)
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Oil in London eked out a modest gain on Monday as investors weighed whether an unprecedented deal by the world’s biggest producers to cut output could stabilize the market reeling from the coronavirus pandemic.

Futures rose less than 1% after earlier surging 8% following the OPEC+ alliance agreement to slash production by 9.7 million barrels a day starting in May. West Texas Intermediate fell 1.5%, and the May-June timespread moved deeper into contango, indicating that traders see the physical glut worsening even with the output cuts.