US crude gains after White House says plans to intervene Saudi-Russia dispute
U.S. crude oil prices climbed on Friday, stretching its gains after the 24% rise on Thursday after President Donald Trump said that he might step in the price war between Russia and Saudi Arabia.
U.S. crude and global benchmark Brent crashed 40% in the last two weeks since the production cut agreed by the OPEC+ failed, causing the Saudi Arabia to ramp up output.
West Texas Intermediate crude futures contract gained 1.7%, or 43 cents, at $26.34 per barrel.
U.S. crude futures grew 2%, or 56 cents, at $25.78 per barrel.
Brent crude futures slid 0.1%, or 3 cents, at $28.44 per barrel, after gaining 14.4% on Thursday.
According to unidentified sources, the Trump administration plans to use a diplomatic approach to convince Saudi Arabia to stop ramping up its supply while threatening Russia of sanctions to reduce production.
U.S. crude prices were lifted after the US Department of Energy said it will buy up to 30 million barrels of crude oil for the Strategic Petroleum Reserve.
Market sentiment remains under coronavirus concerns and fears of suppressed global economic activity. Meanwhile, markets are flooded with cheap supplies due to the Russia-Saudi Arabia price war.