Oil posts biggest intra-day gain on record after Washington touts Saudi-Russia deal

by   |  VIEW 380
Oil posts biggest intra-day gain on record after Washington touts Saudi-Russia deal

On Thursday, the 2nd of April 2020, both US and Brent crude oil futures’ prices witnessed their largest ever intra-session leapfrog on record after the US President Donald Trump had been quoted saying that he had been in a telephone conversation with the Russ President Vladimir Putin and the US President had been expecting an oil production cut from Russian and Saudi between 10 million to 35 million barrels per day in a near-term outlook.

Surprisingly, US President Donald Trump’s comment came forth shortly after a Saudi state-backed media was quoted saying in a report that the world’s largest exporter of crude oil, the OPEC-kingpin Saudi Arabia was going to call on an emergency meet of the crude oil producers to reshape the global crude oil market.

Aside from that, followed by Trump’s remarks that he was expecting another alliance between Saudi and Russia that might slash global crude output between 10 per cent to 35 per cent, both Brent crude had climbed as much as 47 per cent to hit $35 per barrel, however wrapped up the day 21 per cent higher over demand frets, while US crude jumped as much as 35 per cent.

Meanwhile, citing scepticism over a likely Saudi-Russia oil output deal given the extent of their acrimonious trade relationship over the recent past that led to a painful break up of a three-year-long OPEC+ pact, a Vice President of market research at Tradition Energy in Stamford, Connecticut, Gene McGillian said on Thursday (April 2nd), “The question will come down to, Will they be able to agree to something? It’s taken a couple of weeks of Brent at $25 and WTI at $20 and it seems as if the Russians are more approachable than they were a month ago.

” Citing statistics, on Thursday’s (April 2nd) market wrap-up, the UK crude futures’ prices had rounded off the day 21 per cent higher to $29.94 per barrel, while the US West Texas Intermediate crude futures’ prices surged 24.7 per cent to wind down the day at $25.32 per barrel.