Record oil output cuts fail to make waves in coronavirus-hit market

Both Brent and WTI have lost more than half of their value this year.(File pic shows Saudi Aramco oil production. - Reuters)

SINGAPORE/LONDON: The minimal impact on oil prices from a global deal for record output cuts showed that oil producers have a mountain to climb if they are to restore market balance as the coronavirus shreds demand and sends stockpiles soaring, industry watchers said.

After several days of deliberation, the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia hammered out an agreement to cut output by 9.7 million barrels per day in May and June, equal to nearly 10% of global supply.