Oil Price Fundamental Daily Forecast – Markets Surge on Saudi, Russia Production Cut News

U.S. West Texas Intermediate and international-benchmark Brent crude oil futures are trading higher shortly after the regular session opening on Thursday after President Donald Trump talked up the possibility of Saudi and Russia ending a price war that has contributed to crude’s massive plunge.

“Worldwide, the oil industry has been ravaged,” Trump told reporters Wednesday. “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.”

Trump added he expects both countries to end their price war within a “few days.” Trump made his remarks ahead of a meeting with energy industry executives scheduled for Friday.

At 14:56 GMT, May WTI crude oil is trading $25.81, up $5.50 or +27.08% and June Brent crude oil is at $30.48, up $5.74 or +23.20%.

Crude oil was also underpinned on Thursday after Bloomberg News reported – citing people with knowledge of the matter – that China will start buying oil for its emergency reserves.

BREAKING NEWS

WTI crude oil surged 30% to trade back above $26 a barrel on Thursday after President Donald Trump told CNBC’s Joe Kernen he spoke with Russian President Vladimir Putin and Saudi Crown Prince Mohammad Bin Salman, adding he expects both countries to cut production by about 10 million barrels, although the cut could be as high as 15 million barrels.