OIL FUTURES Prices up more than $2/b on hopes of possible OPEC+ deal

Washington — Oil futures prices remained up and steady Tuesday, potentially on indications of another possible OPEC+ agreement, following Monday's historic decline.

As of 1626 GMT, the NYMEX April light sweet crude contract rose $2.38/b from Monday's settle to $33.51/b while the May ICE Brent crude futures increased $2.45/b to $36.81/b.

NYMEX front-month crude settled at $31.13/b Monday, down $10.15, or 25%, while ICE front-month Brent settled at $34.36/b, down $10.91, or 24%.

Crude futures had fallen roughly 47% since January 20, when commodities markets first began reacting to demand destruction caused by the coronavirus outbreak.

"Risk aversion is tentatively back, and oil prices are clearly benefitting from the broader market rally," OANDA analyst Edward Moya said Tuesday.

Moya said prices were climbing on earlier gains which followed comments by Alexander Novak, Russia's energy minister, on Monday that further cooperation with OPEC+ is possible.

"We may reach new agreements if needed," Novak said.

Saudi Arabia may dispatch its former energy minister, Khalid al-Falih, for talks with Novak to de-escalate a ratcheting oil price war between the two major producers, a Saudi source told S&P Global Platts.

Still, Moya said a sustained Brent rally above $40/b is unlikely.

"Other OPEC + members are ramping up production and if the ultimate Russian goal is to do irreparable damage to US shale, oil prices need to stay near their crash lows a lot longer," Moya said. "OPEC + is dead and OPEC itself is at risk at losing more members."

US President Donald Trump, who celebrated the decline in oil prices as "good for consumer" in a tweet Monday, also "discussed global energy markets and other critical regional and bilateral issues" in a call Monday with Saudi Crown Prince Mohammad Bin Salman, according to a White House statement Tuesday.

The US Department of Energy announced Tuesday that it would suspend a sale of up to 12 million barrels of Strategic Petroleum Reserve crude due to the recent crash in global oil prices. Bids for the sale were due Tuesday afternoon.

"Given current oil markets, this is not the optimal time for the sale," Jess Szymanski, a DOE spokeswoman said.