Asia markets fell on Monday with investors cautious on news of an international deal to shore up oil prices and tentative signs of progress in efforts to combat the coronavirus pandemic.
OPEC producers dominated by Saudi Arabia and allies led by Russia thrashed out a compromise deal on Sunday to cut production by nearly 10 million barrels per day from May. Oil benchmarks surged in early Asian trade, with WTI climbing nearly eight per cent and Brent up five per cent before lunch.
The rally followed months of slumping prices after the COVID-19 outbreak sapped demand as countries around the world have put their populations under lockdown.
A Saudi-Russian price war also saw the ramping up of production as both countries bid to hold on to market share and undercut US shale producers.
OPEC Secretary General Mohammad Barkindo called the cuts “historic” in size but analysts said the measures may not go far enough to secure a long-term rebound.