Oil continues to recover, with Trump hinting to get involved in the price war between Saudi Arabia and Russia
Economy News _ Baghdad
Oil prices continued to recover on Friday, following significant gains made in the previous session after US President Donald Trump hinted that he might intervene in the price war between Russia and Saudi Arabia at "an appropriate time".
Prices also received support from the United States' plans to buy up to 30 million barrels of crude oil for emergency stocks by the end of June, while reports said regulators in the nation's largest oil producing state, Texas, had curbed production.
The futures contracts for West Texas Intermediate, the most active American brokerage for delivery in May, rose 43 cents, or 1.7 percent, to $ 26.34 a barrel by 0540 GMT. The contract increased by 5.5 percent to $ 27.34 a barrel earlier in the session.
US crude futures for April delivery in April rose 43 cents to $ 25.65 a barrel. The contract for the closest benefit for April, which increased 24 percent on Thursday, expires later on Friday.
"The sudden recovery of crude oil prices last night was mainly driven by a study by the United States of intervention in the oil market by increasing strategic reserves, while some oil production contracted," said Margaret Young, market analyst at CMC Markets.
"The main issue is that global energy demand is falling sharply as more countries join the 'closure' club," she added. The risk that Covid-19 poses to the overall economy may exceed anyone's expectations, and may continue for a long period of time. ”
Brent futures rose 28 cents, or about one percent, to $ 28.75 a barrel.
Global benchmark crude increased 14.4 percent on Thursday, its biggest one-day gain since September, but was heading towards its fourth weekly decline on Friday.
US crude and Brent crude prices have tumbled nearly 40 percent in the past two weeks since talks between the Organization of Petroleum Exporting Countries (OPEC) and its allies, including Russia, collapsed, resulting in Saudi Arabia boosting production.
The Wall Street Journal quoted unnamed sources as saying that the Trump administration was considering a diplomatic push to urge Saudi Arabia to cut supplies and use a threat of sanctions against Russia to force it to cut production.