Oil hikes after Trump says Saudi, Russia likely to resolve price war
Crude oil futures gained almost 5% on Thursday after U.S. President Donald Trump stated that he anticipated an agreement will be reached by Saudi Arabia and Russia regarding their price war.
Brent crude futures climbed 4%, or $1, at $25.74. US West Texas Intermediate crude futures rose 3.7%, or 75 cents, at $21.06.
Trump said that the oil industry struggled with the plummeting prices, sliding down to 18-year lows, as Saudi Arabia and Russia fought over market share. An even more decreasing oil demand amid the coronavirus pandemic also weighed heavily on the industry.
Trump is also set to meet with oil executives to discuss alternatives in helping the industry survive the pandemic, as more lockdowns are imposed and industrial activity is at its lowest.
U.S. crude stockpiles increased 13.8 million barrels, their largest gain since 2016.
Analysts forecast an even worse situation in the coming weeks as refiners are expected to require less crude. Gasoline demand also had its largest weekly drop.
Research firm Rystad Energy forecasted a 23% decline. It is down to 77.6 million barrels per day in global crude oil demand.