Oil prices were boosted by increasing faith in the market that producers will to stick to commitments to cut crude supply while demand picks up with more cars back on the road as coronavirus lockdowns are eased around the world. US West Texas Intermediate (WTI) crude futures gained 3.2 percent, or $1.06, to $34.31 a barrel as of 4.29am GMT, just off an intra-day high of $34.33. There was no WTI settlement on Monday because of the US Memorial Day holiday. Brent crude futures were up nearly 1.7 percent, or 59 cents to $36.12, adding to a 1.1 percent gain on Monday in thin holiday trading.
The market was buoyed by comments from Russia reporting its oil output had nearly dropped to its target of 8.5 million barrels per day (bpd) for May and June under its supply cut deal with the Organisation of the Petroleum Exporting Countries (OPEC) and other leading producers, a grouping known as OPEC+.
“There’s definitely a feeling those cuts have come through as well as you could expect,” said Daniel Hynes, senior commodity strategist at Australia and New Zealand Banking Group.
OPEC+ countries are set to meet again in early June to discuss maintaining their supply cuts to shore up prices, which are still down around 45 percent since the start of the year. The big producers agreed in April to cut output by nearly 10 million bpd for May and June.
Russia’s energy ministry on Monday quoted minister Alexander Novak as saying a rise in fuel demand should help cut the current global surplus of around 7-12 million bpd by June or July.
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FTSE 100 LIVE: Oil prices rose on Tuesday
5pm update: UK markets close
The FTSE-100 index at the close was up 74.48 at 6067.76.
Similarly, the FTSE mid-250 index closed higher, up 534.56 at 16933.42.
4.40pm update: Global markets rose on Tuesday
Global equity markets strode higher on Tuesday, along with crude oil, as investors focus on more stimulus in China and the prospect of a reopening world economy.
The euro got a boost from a weaker dollar as growing optimism about a global economic recovery from the COVID-19 pandemic supported riskier currencies and sent safe-haven gold lower.
Crude prices rose, supported by growing confidence that producers are following through on commitments to cut supplies and as fuel demand picks up as coronavirus lockdowns ease.
3.50pm update: FTSE 100 makes slight gains
The FTSE-100 index at 3:45pm was up 64.20 at 6057.48.
3pm update: FTSE 100 update
The FTSE-100 index at 2:45pm was up 61.82 at 6055.10.
1.27pm update: Spanish treasury to lend €14billion (£12.4billion) to social security fund
The Spanish announced the package today in order to the state-run social security amid the coronavirus pandemic.
12.32pm update: Denmark faces huge recession
Denmark is facing its biggest financial contraction since World War two the ministry has revealed.
Finance Minister, Nicola Wammen said: “It is serious. The corona crisis is likely to affect the Danish economy for several years going forward.
“But we have paved the road for a way out of the crisis, and we have already taken the first important steps.”
11.18am update: FTSE 100 72 points up
The FTSE 100 Index is currently 74.23 points up at 6,066.89 at the time of writing.
10.34am update: Hong-Kong index closes on high
Hong-Kong’s, Hang Seng index has closed 432.4 points up at 23,384.7 points after today’s trading.
FTSE 100: The index has been on the rise
9.50am update: Sweden expecting seven percent contraction
The Swedish economy is expected to shrink by seven percent this year.
Finance Minister, Magdalena Andersson said: “Our best forecast today is negative GDP growth of 7% this year.”
9.12am update: The FTSE 100 rises
The FTSE 100 has begun trading 107.44 points up following Boris Johnson’s announcement that non-essential shops could begin to reopen.
The index is currently at 6,101.03 a 1.8 percent rise from yesterday.
8.31am update: Travel stocks rise
Travel stocks rose today as Tui, British Airways owner IAG and Easyjet also saw an increase in price this morning.
As by CNBC reporter, Julianna Tatelbaum, Tui stocks rose 38 percent, Iag 16 and Easyjet nine this morning.
8.02am update: Emmanuel Macron pledges to support French car industry
Mr Macron stated today that the support for the French car sector will be amplified.
He said: “The health crisis massively and brutally brought the French car sector to a halt.
“This is a part of our economy, thousands of jobs.”
Coronavirus UK: Changes to the lockdown
7.12am update: EU ready to propose huge financial package
According to Austria’s press agency, former European Commission secretary-general Martin Selmayr, stated Ursula von der Leyen will propose a two-year €500billion (£446billion) recovery fund.
That coronavirus recovery fund will be alongside a new EU budget worth €1trillion (£893billion).
The recovery fund will be made up of mostly grants and a combination of loans.
7.08am update: Japan’s Nikkei 225 up
Japan’s stock exchange is currently up from yesterday following the end of the state of emergency in the country.
At the time of writing, the stock exchange is currently at 21,290.98, 549.85 points up.
Additional reporting by Rachel Russell.
6.04am update: Japan shares hit 10-week peak
Asian shares forged ahead on Tuesday while US stock futures challenged a major chart barrier as investors looked past Sino-US trade tensions to more stimulus in China and a re-opening world economy.
Japan’s Nikkei index the way with a rise of 2 percent to its highest since early March when the economic impact of the coronavirus was just becoming clear.
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS added 1.4 percent, while South Korea rose 1.1 percent.
While Wall Street had been shut on Monday, E-Mini futures for the S&P 500 ESc1 climbed 1.3 percent to test the 3,000 level. EUROSTOXX 50 futures STXEc1 added 0.6 percent and FTSE futures FFIc1 1.8 percent.
Chinese blue chips firmed 0.8 percent after the country’s central bank said it would strengthen economic policy and continue to push to lower interest rates on loans.