Oil edges higher after 18-year lows prompt U.S.-Russia talks plan

OIL PRICE - LONDON. Oil prices firmed on Tuesday after U.S. President Donald Trump and Russian counterpart Vladimir Putin agreed to talks on stabilising energy markets, with benchmarks climbing off 18-year lows, though the coronavirus-related demand hit capped gains.

Brent crude was up 7 cents at US$ 22.83 a barrel by 1346 GMT after closing on Monday at US$ 22.76, its lowest finish since November 2002. It hit a session high of US$ 23.87.

U.S. crude was up 52 cents at US$ 20.61 after settling in the previous session at US$ 20.09, its lowest since February 2002. It traded as high as US$ 21.89 a barrel earlier in the session.

Oil markets have faced a double whammy from the coronavirus outbreak and a race to win market share between Saudi Arabia and Russia after OPEC and other producers failed this month to agree on deeper supply cuts to support oil prices.

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Trump and Putin agreed in a phone call to have their top energy officials discuss stabilising oil markets, the Kremlin said on Monday.

Although the futures market is seeing a recovery, physical cargoes are selling in some regions at single digits, with sellers offering hefty discounts.

"The gap between physical assessments and futures reflects the differences between the realities on the ground and speculation about efforts to ease that pressure going forward," JBC Energy said.