Crude Oil Prices Surge after Trump’s tweet
US President Donald Trump tweeted on 2nd April, 2020 that he had spoken to Saudi Crown Prince Muhammad Bin Salman (MBS) who spoke with President Putin of Russia to cut the oil production in order to put an end to current crude price issue.
He further added that they both will be cutting 10 – 15 million barrels of crude oil per day. However, Trump didn’t mentioned whether the crude oil cut is per day or somewhat else.
Assuming, the 10-15 million barrels per day, it is estimated that Saudi Arabia and Russia will be reducing their oil production to nearly half what they have been producing earlier.
The crude oil price surged 35% on Trump’s tweet. However, at present (11:45 am, 2nd April, 2020), the Crude Price is up near 20%.
The oil production and consumption for year 2020 stands at around 100 million barrels per day, however, due to Covid-19 spread and closure of major industries and lock down across many countries have reduced the oil demand.
The response of Kingdom of Saudi Arabia and Russia is awaited.