Crude oil futures rise nearly 3% as Trump administration works with Saudi Arabia to stabilise prices, but support seen weak

The market is testing support following a more than 60 percent slide in oil prices since the start of the year due to the impact of the coronavirus on global demand and a market share war between Saudi Arabia and Russia set to bloat oil supply from April

Reuters March 24, 2020 08:08:18 IST
Crude oil futures rise nearly 3% as Trump administration works with Saudi Arabia to stabilise prices, but support seen weak

Melbourne: US crude oil futures climbed nearly 3 percent on Tuesday in light trading as the Trump administration launched an effort to work with Saudi Arabia to stabilise oil prices.

West Texas Intermediate (WTI) crude CLc1 futures for May delivery rose $0.67, or 2.9 percent, to $24.03 as of 2353 GMT, adding to gains on Monday.

Brent LCOc1 futures for May delivery rose 52 cents, or 1.9 percent, to $27.55 as of 0015 GMT.

“However volumes are terrible, they’re very low, so this is not a high confidence move,” CMC Markets and Stockbroking chief market strategist Michael McCarthy said.

Crude oil futures rise nearly 3 as Trump administration works with Saudi Arabia to stabilise prices but support seen weak

Reuters

The US administration has appointed a special energy representative to Saudi Arabia, Victoria Coates, as part of a diplomatic push to stabilise energy markets, hammered by a price war between Saudi Arabia and Russia.

The market is testing support following a more than 60 percent slide in oil prices since the start of the year due to the impact of the coronavirus on global demand and a market share war between Saudi Arabia and Russia set to bloat oil supply from April.

“Given the market’s already pricing in full production from Saudi Arabia and Russia and we’ve already priced in significant demand destruction, it’s hard to see what would cause the next significant downdraft from here,” McCarthy said.

Australian refiners Viva Energy and Caltex Australia Ltd said they expect jet fuel demand to shrink by 80 percent to 90 percent due to air travel grinding close to a halt and plan to take in less crude.

Updated Date:

also read

Maharashtra records 3,249 new coronavirus cases, 4 deaths; active tally below 24,000
Health

Maharashtra records 3,249 new coronavirus cases, 4 deaths; active tally below 24,000

Mumbai registered 978 cases of COVID-19 and two fatalities in the last 24 hours

At 3,098, Maharashtra sees 104% spike in COVID-19 cases in 24 hours; 6 die
India

At 3,098, Maharashtra sees 104% spike in COVID-19 cases in 24 hours; 6 die

Mumbai leads the active tally with 6,409 cases, followed by 5,335 in Pune district and 4,037 in Thane district

High import duties lead to drug shortage in Pakistan amidst possible sixth wave of COVID
World

High import duties lead to drug shortage in Pakistan amidst possible sixth wave of COVID

Pakistan, over the past few weeks, has seen rising coronavirus cases, a grim reminder for the country that its battle with the pandemic is yet far from over