Trump expects Saudi, Russian oil production cuts after phone call

Trump expects Saudi, Russian oil production cuts after phone call

Trump expects Saudi, Russian oil production cuts after phone call

The state-run news agency in Saudi Arabia noted that a call took place between Trump and the crown prince, but made no mention of Trump's specific call on Saudi Arabia to cut production.

As of 0830 GMT, Brent was down $1.45, or 5.5%, at $24.90.

The US president tweeted "I expect & hope" the two countries would agree to cut supply by 10 million barrels "and maybe substantially more".

Saudi Arabia is only a couple of days into a record supply surge above 12 million barrels a day, but the oil market has already been contending with a vast surplus for weeks.

It's worth mentioning that the US President Trump will meet major oil companies on Friday to discuss the potential ways to help the oil industry hammered by slumping energy demand during the coronavirus outbreak and a price war between Saudi Arabia and Russian Federation, as per Reuters.

The oil war between Saudi Arabia and Russian Federation had started earlier last month, after Saudi Arabia chose to raise oil production by two million barrels a day and slash prices by between US$6 to US$8 per barrel, in response to Russia's insistence on keeping present output levels despite falling demand globally due to the coronavirus outbreak.

The sector has been hammered since the start of the outbreak as demand for energy from China, which was the epicentre of the pandemic, fell, causing oil prices to collapse. WTI slumped below $20, having lost around 65 percent of its value in the first quarter.

China's move helped to boost prices in a week when the oil market experienced an extremely rare situation. "I think they're going to make a deal".

Western Canadian Select had earlier this week traded at "four to five dollars".

Traders continued to worry about a bleak demand outlook for crude amid the COVID-19 pandemic.

US shale oil producers have made the country self-sufficient but are being walloped by falling oil prices and the global economic slowdown. Several other people said all of the capacity there had been leased to trading houses, but space remained in some of their tanks and they expected additional crude deliveries.

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