Oil Gains 5% As Trump Expects Saudi-Russia Truce In Price War

In early trade on April 2, 2020, crude oil futures gained about 5% after the US President Donald Trump said Saudi Arabia and Russia could reach a deal in the next few days ending their price war.

Brent crude futures surged 4% or $1 to $25.74 as of 0118 GMT. U.S. West Texas Intermediate (WTI) crude futures gained 3.7% or 75 cents to $21.06.

At a news conference, Trump said the oil industry has been wrecked with prices slipping to 18-year low levels due to twin shocks of waning demand due to coronavirus pandemic and oil price war between Saudi Arabia and Russia. "It's very bad for Russia, it's very bad for Saudi Arabia. I mean, it's very bad for both. I think they're going to make a deal," he told reporters at the White House. After discussing with leaders of both the countries, Trump expects Saudi-Russia would "work it out over the next few days"

Also, Trump said that he would be having a meet with executives from the industry and deliberate on a number of options for supporting the sector facing huge disruption in demand as virtual lockdowns globally have brought industrial activity to a standstill.

Consequently, US crude supply surged the most to 13.8 million barrels logging their highest weekly gain since 2016.

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