Oil Market Thinks Production Cuts Coming, Rises Another 12% In Early Trading

April 3, 2020

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Oil Market Thinks Production Cuts Coming, Rises Another 15% In Early Trading — Oil Balance Saudi Arabia
Image by Raminagrobis

The price for crude on international market gained approximately 12% in early trading as traders believe a large production cut agreement between Russia, Saudi Arabia, and possibly the United States, is in the works and could be announced soon. The increase comes on an approximate 25% price gain yesterday in the commodity.

The increase in the price of crude is helping U.S. equity markets, in spite of this morning's announcement of over 700k job losses, as the energy sector is a big employer in America.

An alliance of oil producers led by Saudi Arabia and Russia is set to debate production cuts of at least 6 million barrels a day and will consider inviting U.S. producers to participate, according to OPEC country officials https://t.co/qGgaP763DK
— The Wall Street Journal (@WSJ) April 3, 2020

https://t.co/dFWg5a6qS2 pic.twitter.com/KDuMCqdxGx
— Newsquawk (@Newsquawk) April 3, 2020

President Trump said yesterday in a tweet that up to 15 million barrels could be cut per day. Oil stockpiles around the world are bursting at the seams and will take some time to burn off once the economies of the world are open again.

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CDM Staff

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