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Oil Extends Rally as G-7 and OPEC+ Step Up Response to Virus

SP Futures according to Bloomberg (March 03, 2020) - Oil extended its rebound from last week’s slump as global policy makers pledged to safeguard markets from the coronavirus, while OPEC and its allies are expected to deepen production cuts.

Futures in New York jumped as much as 3.7% in early Asian trading after surging on Monday amid a broad move upward in financial markets. They’ve now recouped around half of last week’s 16% tumble. Group of Seven finance ministers and monetary officials will speak by teleconference on Tuesday, while OPEC+ will start a two-day meeting in Vienna on Thursday.

All but two of 29 analysts, traders and brokers in a global poll predicted that the Organization of Petroleum Exporting Countries and its allies will announce new curbs, with an average expectation of 750,000 barrels a day. Whether that’s enough to stabilize the market and rein in oil volatility -- which has surged to highest in more than a year -- remains to be seen.

West Texas Intermediate futures for April delivery rose 3.4% on the New York Mercantile Exchange to $48.36 a barrel as of 9:11 a.m. in Singapore. The contract surged 4.5% on Monday, the most since mid-September.

Brent futures for May climbed 3% to $53.43 a barrel on the ICE (NYSE:ICE) Futures Europe exchange after a 4.5% jump on Monday. The global crude benchmark traded at a premium of $4.95 to WTI for the same month.