By Barani Krishnan
Investing.com - Oil prices settled mixed on Tuesday after an emergency rate cut by the Federal Reserve was tempered by uncertainties ahead of an OPEC meeting on production cuts.
West Texas Intermediate, the U.S. crude benchmark, settled up 43 cents, or 0.9%, at $47.18 per barrel. WTI rose 4.5% on Monday after a 16% drop last week, its biggest weekly fall since mid-December 2008.
Tuesday’s rebound came after the Federal Reserve cut the key lending rate cut by half a point ahead of its scheduled March 18 meeting. The Fed briefly boosted optimism among investors expecting stimulus for markets battered by the coronavirus epidemic.
Brent, the London-traded global benchmark for crude, however, settled down 4 cents, or 0.07%, at $51.86. It rose 4.5% in the previous session.
Earlier on Tuesday, WTI and Brent rallied about 4% each before falling back on concerns over what OPEC would decide later in the week.
OPEC’s 13 members open their regular twice-yearly meeting on Thursday before a special session on Friday with 10 producing allies led by Russia, who are collectively known as OPEC+.
Saudi Arabia, which dominates the group, is trying to push for an agreement to cut another 1 million barrels per day on top of 2.1 million bpd already agreed in December. Russia, whose cooperation is vital for a cut, hasn’t given the nod to the Saudis.