Oil hovers near 18-year low as coronavirus-led demand hit outweighs OPEC production cuts

REUTERS/Lee CelanoCrew members look over idle oil rigs in the Gulf of Mexico near Port Fourchon, Louisiana August 11, 2010.

• Oil prices remain near 2002 levels as the demand hit from the coronavirus pandemic outweighs historic production cuts from OPEC.
• US West Texas Intermediate futures rose slightly Thursday to $20.53 per barrel, but didn't break above the key level. Brent crude gained nearly 4% to $28.75 per barrel the same day.
• Forecasts for continued weak demand show that OPEC's agreed upon production cuts may not be enough to support commodity prices.
• Watch oil trade live on Markets Insider.
• Read more on Business Insider.

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Oil is hovering near its lowest prices since 2002 as the demand hit from the coronavirus pandemic overshadows historic production cuts from OPEC.

US West Texas Intermediate futures rose slightly Thursday to $20.53 per barrel. International benchmark Brent crude gained nearly 4% to $28.75 per barrel the same day.

Oil prices have struggled to make meaningful rebounds after the International Energy Administration on Wednesday forecast that global demand will fall this year as much as 9.3 million barrels per day. For April, the IEA sees global oil demand slumping as much as 29 million barrels per day amid the coronavirus pandemic, which has halted global travel.

Read more: A Wall Street strategy chief lays out 8 stock trades that can give investors an extra jolt of returns as the post-coronavirus rally enters a new phase

The recent production cuts agreed upon by OPEC may not be enough to offset the cratered demand caused by the coronavirus crisis. Over the weekend, the group agreed to cut oil production by 9.7 million barrels per day.

Oil prices have tanked this year, weighed down by the coronavirus pandemic and the OPEC price war that erupted amid the outbreak. US WTI is down 67% year-to-date, while Brent crude has fallen 55% so far in 2020.

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