OIL REACHES $40 A BARREL BUT SINKS BACK TO $38.92
Oil rose past $40 per barrel on Wednesday, June 3 2020, three months after oil prices plunged over 30% at the worst level since the Second Gulf War, Shalini Nagarajan wrote for Business Insider on June 3, 2020.
In early European trading, Brent crude rose to $40.12 a barrel, its highest level since the coronavirus-driven market crash in March. By the US morning, it had pulled back below that significant milestone, and was trading at $38.92 per barrel as of 12.50 p.m. GMT (7.50 a.m. ET).
Oil spiked Tuesday and early Wednesday on reports that OPEC+ members are favoring extension of production cuts currently set to end in June. The cartel could meet to discuss those cuts as early as Thursday, Reuters reported. However, Bloomberg cast doubt on that suggestion, saying the meeting may no longer take place.
Bloomberg reported that the meeting may no longer take place, unless "all nations first agree to cut output by as much as they promised." While Russia and other members are eyeing one-month extensions to production cuts, Saudi Arabia is reportedly in favor of as long as three months more cuts.