Breaking: WTI Oil surges above $25 after Trump expects Saudi-Russian deal to cut production by 10-15mpbd

-- more to come  |  02/04/2020 14:33

Oil prices are surging by over 10% on the day, trading above $23. US President Donald Trump has told CNBC that he spoke with Russian President Vladimir Putin and Saudi Crown Prince Muhammed bin Salman. He said that they agreed to an oil production cut of 10 million barrels that could be expanded to 15 million.

Update: The rush to buy the black gold has intensified, with prices temporarily topping $27 at one point, an increase of over 25%. High volatility persists. Trump has also tweeted about it:

Just spoke to my friend MBS (Crown Prince) of Saudi Arabia, who spoke with President Putin of Russia, & I expect & hope that they will be cutting back approximately 10 Million Barrels, and maybe substantially more which, if it happens, will be GREAT for the oil & gas industry!

Saudi Arabia has also called for an urgent OPEC+ meeting to discuss the situation. Governments have enacted lockdowns and travel restrictions which have dealt a blow to demand for petrol. Saudi Arabia and Russia fell out over production cuts and have kicked off a price war. Several US shale companies have suffered significant financial distress amid the fall in prices. The move that Trump announced has turned the tables in favor of oil bulls.

WTI oil prices

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