(Reuters) – An agreement by oil-producing nations on Sunday to cut output by a record amount may sustain a recent bounce in stocks, although stay-at-home restrictions and closures tied to the coronavirus pandemic still weigh on the global economy.
FILE PHOTO: The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, U.S., November 22, 2019. REUTERS/Angus Mordant
OPEC and allies led by Russia agreed to cut oil output by a record amount – representing around 10% of global supply – to support oil prices amid the pandemic, although sources told Reuters that effective cuts could amount to as much as 20%.
S&P futures ESC1 were down on Sunday evening, while U.S. crude futures CLc1 and Brent LCOc1 opened higher before paring gains.
The deal could buoy oil prices over the longer te