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Oil Prices Soar 10% On Hopes Of Truce In Price War

Oil prices soared around 10 percent on Thursday after U.S. President Donald Trump said that a price war between Saudi Arabia and Russia could end soon.

Speaking at a White House press briefing on Wednesday, Trump said that he expected Saudi Arabia and Russia to reach a deal soon as he spoke with both countries’ leaders.

“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,” said Trump.

Meanwhile, speaking at a government meeting on Wednesday, Russian President Vladimir Putin called for global oil producers and consumers to address “challenging” oil markets and find a solution that would improve the situation.

Benchmark Brent crude jumped as much as 10.4 percent to $27.34 per barrel, while U.S. West Texas Intermediate (WTI) crude futures were up 9.8 percent at
$22.30.

Analysts say that prices may also have been boosted by expectations that American shale oil producers, which have relatively high production costs, are coming under pressure to cut production.

The material has been provided by InstaForex Company – www.instaforex.com