(Bloomberg) -- Crude rose for a second day after the U.S. signaled it was open to the possibility of an alliance with Saudi Arabia to stabilize prices.

Futures in New York gained as much as 4.1%, after advancing 3.2% in Monday’s session. U.S. Energy Secretary Dan Brouillette said that a joint U.S.-Saudi oil alliance is one idea under consideration to steady the market after the worst crash in a generation. The market was also supported by a second wave of initiatives by the Federal Reserve to support a shuttered American economy. However, a rally in other risk assets such as equities was soured by a second failed effort by Congress to agree on a stimulus bill.

Oil has lost 46% in March alone as the coronavirus outbreak brings economies worldwide to a standstill. The severe demand shock has dimmed traders’ outlooks for consumption, with some estimating a collapse of as much as 20 million barrels a day this year. IHS Markit estimates oil demand in the second quarter alone will contract by 14 million barrels per day.

Nigeria opened a new front in the oil price war between some of the world’s largest OPEC+ countries, offering to sell its crude in April at unusually large discounts in an effort to undercut its rivals. Even so, traders said the West African country may not have gone cheap enough.

©2020 Bloomberg L.P.