Government & Regulatory | Oil & Gas Prices

Oil Price Jump ~40% from Mid-Week Low as Russia, Saudi Arabia Reconcile; Set Meeting

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   |    Friday,April 03,2020

Saudi Arabia and Russia are rumored to be nearing a truce in regard to OPEC oil production cuts, according to multiple reports.

On April 4, US President Donald Trump tweeted that OPEC will likely agree to production cuts of anywhere between 10-15 million barrels per day.

This comes after several successful calls took place between President Trump, Saudi Crown Prince Mohammad Bin Salman Al Saud and Russian President Vladimir Putin. The discussions were aimed at restoring balance to the markets that have been hammered by the oil price wars coupled with the COVID-19 pandemic.

The Saudi Press Agency released the following statement today regarding the development: "Today, the Kingdom calls for an urgent meeting for OPEC+ group and other countries, with aim of reaching a fair agreement to restore the desired balance of oil markets. This invitation comes within framework of the Kingdom's constant efforts to support the global economy in this exceptional circumstance, and in appreciation of President Donald Trump of the United States of America's request and the US friends' request."

Meeting Set for April 6, 2020

An OPEC+ meeting has been set for Monday, April 6, 2020 and will include Saudi Arabia, Russia and several other countries that have not been disclosed (various reports have indicated that it is likely the U.S., Canada, the U.K. and Mexico will be included, however this has not been confirmed).

The meeting will be held via teleconference.

Oil Prices Jump Nearly 40%

This news gave a much-needed boost to the commodities market, with both WTI and Brent prices rising 39% to $28/barrel and $34/barrel since mid-week, respectively.