Oil steadies following steep declines amid pandemic

Oil prices steadied on Wednesday after hitting four-year record lows, hit by weak fuel demand, global travel ban, and social restrictions to contain the virus pandemic.

Brent crude went up 0.3%, or 8 cents, at $28.81 per barrel. The international benchmark dropped 4.3% on Tuesday.

U.S. crude slid 2 cents, at $26.93 per barrel. West Texas Intermediate plunged 6% on Tuesday.

The decline in US inventories of gasoline, crude, and distillates underpinned some prices. However, the demand outlook remains gloomy due to the Saudi Arabia-Russia price war.

The world’s wealthiest nations released trillions of dollars of spending to support economies and avoid a fallout due to the pandemic. Social restrictions globally have also heightened at a rate bigger than in World War II.

Elsewhere, Virgin Australia has canceled all international flights and Prime Minister Scott Morrison said that the crisis could last up to six months or more.

Iraqi oil minister called on the Organization of the Petroleum Exporting Countries (OPEC) and its allies to hold an emergency meeting to discuss measures to impose on the oil market.

The Saudi Arabia-Russia price war broke out after the agreed production cut between OPEC+ fell out.