Stimulus expects oil prices to rise 7% after fall
Oil prices rose more than 7% on Tuesday, bouncing off the biggest drop in almost 30 years a day earlier, as the possibility of economic stimulus encouraged purchases, and Russia said it could still hold talks with OPEC on the cooperation in production cuts.
On Monday, the President of the United States, Donald Trump, promised important measures to tighten the American economy against the impact of the coronavirus outbreak. Japan's government said it planned to spend more than $ 4 billion on a second package of measures to tackle the virus. Oil, which fell 25% on Monday, recovered on Tuesday.
Brent hit a peak session of $ 38.22 per barrel. Technical traders noted that none of the benchmarks hit the previous session's high and said the day's bounce seemed as prices were consolidating in a new lower range. They increased because yesterday fell incredibly, and some bargain hunters are driving things forward, said Bjoernar Tonhaugen, head of oil markets at energy consultant Rystad.