Oil prices rose on Tuesday on hopes of output cuts by the world’s largest crude producers as the COVID-19 pandemic impacts demand.

Reuters reports Brent crude LCOc1 was up by 93 cents, or 2.8%, at $33.98 a barrel after dropping 3% on Monday. Meanwhile, U.S. crude CLc1 was up by 79 cents, or 3.03%, at $26.87 a barrel, following close to an 8% decline in the previous session.

The world’s principal oil producers, including Russia and Saudi Arabia, are set to agree to slash output at a meeting scheduled for Thursday. However, an agreement is dependent on the U.S. also taking action, sources informed Reuters.

The threat of a major recession looms over the market as a great deal of economic activity has come to a standstill due to the coronavirus pandemic.

According to Eurasia Group: “Oil producers have to cut deeply and quickly if they want to avert total saturation of oil markets.”

Global oil demand has fallen by as much as 30%, or around 30 million barrels per day, corresponding with moves from Russia and Saudi Arabia to flood markets with additional supply after an agreement to suppress output collapsed.

On Monday oil prices declined as Saudi Arabia and Russia postponed a meeting to agree on output restrictions until Thursday.

OPEC+ has been curbing production over the past few years within a fast expansion of U.S. output, making the country the biggest crude producer in the world.

Furthermore, questions remain whether the U.S. would get involved in any joint action. President Trump stated OPEC has not requested he drive domestic oil producers to slash production to bolster prices. He went on to add that U.S. output declined in response to falling prices.

Trump told a press briefing on Monday: “I think it’s happening automatically but nobody’s asked me that question yet so we’ll see what happens.”

A global recession – something economists polled by Reuters say is underway – may be more serious than forecast weeks ago due to the coronavirus outbreak.

Read the latest news update: European shares climb amid lower coronavirus death toll