Oil prices up amid hopes of central banks action, OPEC+ production cut

Oil prices gained on Tuesday in Asia amid hopes that global central banks will take action to prevent a global economic collapse.

US Crude Oil WTI Futures traded 2.1% higher to $47.75 by 12:20 AM ET (04:20 GMT). International Brent Oil Futures rose 1.9% to $52.90. Oil prices settled up nearly 5% in the previous session.

The Group of Seven finance ministers and central bank governors are scheduled to hold a teleconference later in the day to coordinate response to the coronavirus outbreak.

Global central banks including the US Federal Reserve, the Bank of Japan and the Bank of England earlier hinted that they would act to support the economies if needed.

US Fed funds futures are pricing in a 100% chance that the Fed will cut rates by 50 basis points at its meeting March 18, Investing.com’s Fed Rate Monitor Tool showed.

The Reserve Bank of Australia slashed its cash rate to a record low this morning.

Meanwhile, growing optimism that the Organization of the Petroleum Exporting Countries (<a href=’https://staging.theenergyyear.com/companies-institutions/opec/’>OPEC) and its allies will order deeper output cuts at their meeting on March 5-6 in Vienna were also cited as a tailwind for the markets today.

OPEC’s 13 members will open their regular twice-yearly meeting on Thursday before a special session on Friday with 10 producing allies led by Russia, who are collectively known as OPEC+.