Oil prices jumped on Thursday on reports that Saudi Arabia and Russia have reached a deal on a deep output cut, according to Reuters which cited two sources, and that cuts could reportedly be as high as 20 million barrels per day. Key details such as how the cuts would be divided, as well as how long they might be in place for, remained unknown.
The reported deal comes as a virtual meeting between OPEC and its allies, known as OPEC+, kicked off in which some of the world’s largest producers were set to discuss historic production cuts as the coronavirus pandemic saps demand for crude. The virtual meeting, which was initially planned for last Monday, began around 10:45 a.m. ET.
U.S. West Texas Intermediate jumped 12% to trade at $28.36 per barrel, before paring some of those gains to trade 3.9% higher at $26.07 per barrel. International benchmark Brent crude rose 2.5% to trade at $33.66 per barrel.
Ahead of the meeting, the Street had been watching for cuts in the 10 million to 15…
