Oil Steadies as Market Waits for Clarity on OPEC Production Cut

(Bloomberg) -- Oil clawed back some lost ground in Asian trading as investors sought clarity on whether Russia would agree to OPEC’s proposal for a large production cut to combat the impact of the coronavirus.

Futures in New York were up 0.4%, after dropping 1.9% Thursday. OPEC ministers extended their initial proposal for a 1.5 million-barrel-a-day supply reduction to year-end, according to delegates, but the reduction is still contingent on Russia’s support, which is so far not evident. OPEC Secretary-General Mohammad Barkindo’s offered reassurance of the group’s commitment to stabilizing oil markets, but sentiment remains fragile.

The U.S. crude benchmark is still on track for a weekly gain of around 3%, following a 16% drop the previous week, after rallying on hopes for stimulus measures in the world’s top economies to cushion the blow from the virus.

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