Sentiment may also be helped after Brent crude oil rebounded from two days of losses.
The steep fall in global oil prices had added to concerns about the outlook for the global economy. Refining NZ, which operates the Marsden Point oil refinery, fell 9.8 per cent yesterday.
OMF treasury manager Stuart Ive, however, warned the rebound "isn't cause to cheer for the depressed sector as the situation and outlook remains far from rosy."
According to Ive, the production-demand picture needs to change.
"The taps need to be turned off until the people can step out into the post-coronavirus world, jump in their car and drive to work. As for flying anywhere that could end up taking a lot longer," he said.
ANZ Bank strategist David Croy said that low oil prices pose a particular risk for the New Zealand dollar.
"Low oil prices might be good at the pump but they generally spill over into other commodities, and that poses downside NZ dollar risks," he said.
The kiwi was trading at 59.49 US cents at 8am in Wellington versus 59.56 cents at 5pm yesterday.
Media package
Meanwhile, investors will be watching for a "rescue package" for local commercial media that have been hard hit by covid-19 as advertising has all but dried up.
NZME has cut more than 200 jobs and magazine publisher Bauer Media closed down completely. Stuff staff were asked to take pay cuts and the firm has started seeking contributions from online readers to stay afloat.
NZME shares last traded at 24.5 cents and are down 55 per cent over the past 12 months.
