The World Bank has cut the oil price forecast for 2020 to $35 per barrel from $58 per barrel expected in October.
Earlier in the day, trading data showed that the price of West Texas Intermediate (WTI) oil surged by 18 percent, with the growth briefly reaching 20 percent.
The COVID-19 crisis has shattered the demand for oil in the world, with many countries subject to stay-at-home orders, flights grounded, and roads nearly devoid of traffic.
On 11 March, the World Health Organisation declared the COVID-19 outbreak a global pandemic. According to Johns Hopkins University, more than 2.6 million people worldwide have been confirmed infected with the coronavirus disease. The global death toll stands at 184,643.