Oil Jumps: Trump Claims He Negotiated a Deal Between Feuders
United States President Donald Trump said Thursday that he had negotiated an agreement with the leading oil producers in Russia and Saudi Arabia. They talked about reducing production and preventing the fall in oil prices amid a global coronavirus pandemic.
Trump stated he spoke to Russian President Vladimir Putin and Saudi Prince Mohammed bin Salman. Now, he expects the two nations to cut output by 10 million barrels per day (BPD). It is an unprecedented figure that represents 10 percent of the global supply.
Trump said the cuts could amount to 15 million BPD. But he did not say whether the United States, the world’s largest oil producer, would contribute to the reductions. As such a move is prohibited by US antitrust legislation.
Moreover, Trump wrote on Twitter that he spoke to his friend, the Prince of Saudi Arabia, who spoke to President Putin. He hopes that they are cutting approximately 10 million barrels. And if it happened, the oil and gas industry would have a great chance to advance.
Most Gulf Stock Markets Win in Hopes of an Oil Deal
Most Gulf stock markets rose on Thursday as crude oil futures rose in hopes of an agreement to end the price war between Saudi Arabia and Russia. Still, mounting fears of a deep global recession due at the coronavirus outbreak, they weighed on the sentiment.
Brent crude futures rose 11.36 percent, or $ 2.81, to $ 27.55 at 07:01 GMT.
Saudi Arabia’s benchmark stock index advanced 1.5 percent, led by a 2.8 percent rise in oil giant Saudi Aramco. Petrochemical stocks also made substantial gains. Saudi Basic Industries rose 3.3 percent and Rabigh Refining and Petrochemical jumped 6.3 percent.
The virus outbreak and pressure from the United States on the SA to stop flooding the market resulted in a drop in demand. Despite this, Saudi Arabia’s supply of crude oil rose to a record of more than 12 million barrels per day on Wednesday.
Qatar’s stock index gained 1.2 percent. The heavy industries in the Qatar market rose by 2.8 percent. On Wednesday, the Gulf state extended the suspension of incoming flights. Except for those of transit and cargo for fear of coronaviruses, reported state media. The country also maintained the closure of an industrial area in Doha, where authorities reported dozens of COVID-19 cases.
In Dubai, the index rose 0.2 percent, backed by a 1.9 percent gain in top-notch developer Emaar Properties. The Abu Dhabi index declined 1.7 percent, dragged down by a 2.1 percent drop in significant lender First Abu Dhabi Bank, and a 2 percent drop in telecoms company Etisalat.
