Oil prices rise as tensions between Saudi Arabia and Russia deescalate
Brent crude surged above $30 on Friday amid signs that Saudi Arabia and Russia could end their feud and agree to make supply cuts to support oil prices.
Oil prices rallied above $30 a barrel on Friday as signs appeared that Saudi Arabia and Russia may end their feud and agree to cut supply to help stabilise the market.
US President Donald Trump weighed into the feud earlier this week in a bid to ease tensions between the two oil producing nations.
On Thursday, Trump tweeted ‘I expect & hope’ that Saudi Arabia and Russia will agree to cut supply by 10 million barrels ‘and maybe substantially more’.
Saudi Arabia is expected to call for an emergency OPEC meeting, while Russian energy minister Alexander Novak said that his country is open to re-entering talks.
Brent crude is trading at 11% higher at $33.33 a barrel as of 15:30 (GMT) on Friday, with the US West Texas Intermediate up 4% to 26.53 a barrel.
Looking to trade oil and other commodities? Open a live or demo account with IG today.
Oil prices plunge in 2020 amid Covid-19 outbreak
Brent crude came close to breaking through $70 a barrel on 6 January where it traded as high as $68.91 a barrel.
However, the commodity’s price has completely collapsed since hitting that peak, falling to a low of $24.74 at the start of April, representing a 64% decline over the first three months of 2020.
The rapid decline in the price of oil has been driven by the economic fallout of the Covid-19 virus which has severely impacted demand, along with the ensuing price war between Russia and Saudi Arabia, with the pair vying for market share and refusing to reduce supply.
But with the prospect of renewed talks between Russia and Saudi Arabia, oil prices has finally found support in April, climbing 34% over the last three days.
You can go long or short oil and other commodities with IG using derivatives like CFDs.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
React to global volatility
Market volatility continues as coronavirus dominates the global agenda. Trade with us to take advantage of:
- Tight spreads – from just 1 point on major indices, and 2.8 on US crude
- Guaranteed stops – they’re free to use, and you’ll only pay a small fee if they’re triggered
- Round-the-clock assistance – our highly-skilled team are on hand to support you
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
