Crude oil prices rebounded and opened with gains on Tuesday in hopes that the U.S. government will introduce some economic stimulus to fight the adverse impact of coronavirus on the world's biggest economy.
International benchmark Brent crude was trading at $36.77 per barrel at 0650 GMT on Tuesday for a 10.3% jump after closing Monday at $33.32 a barrel.
American benchmark West Texas Intermediate (WTI) was at $33.26 a barrel at the same time for a 2.6% increase after ending the previous session at $32.42 per barrel.
After Saudi Arabia-led OPEC and Russia-led non-OPEC failed Friday to agree to further cut their oil production levels, while Riyadh offered massive discounts for its oil exports, oil saw its worst price decline in 29 years.
Brent fell to $31.27 per barrel and WTI plummeted to $27.34 a barrel on Monday to mark their lowest levels since February 2016. Both benchmarks' daily loss of over 30% was the largest single-day percentage decline since the Gulf War in January 1991.
U.S. President Donald Trump said Monday he would meet with Republican lawmakers in the Senate and the House of Representatives on Tuesday to discuss a possible tax cut to mitigate the adverse impact of coronavirus on the American economy.
On Friday, Trump signed an $8.3 billion spending bill that included funding for vaccine research and virus prevention.
The U.S.' stimulus plan is sparking investor hope that oil demand in the world's biggest oil consumer could increase in the second quarter of 2020 to provide support for crude prices.
By Ovunc Kutlu