Crude oil price rose on Thursday after President Donald Trump showed faith that the damaging oil price battle between Saudi Arabia and Russia can be settled.
West Texas Intermediate crude gained 9.6%, to $22.80 per barrel, after slipping 0.8% to settle at $20.31 yesterday. Brent crude surged 10% to $27.34 a barrel, as at 13.15 Nigerian time on Thursday.
West Texas Intermediate crude lost 66.5% in the first quarter of 2020, the biggest quarterly percentage loss based on records dating back to 1983. Brent crude also plunged 65.6% in the same quarter, the largest quarterly fall based on records dating to 1988.
In addition, China is moving ahead with plans to purchase more crude oil for its emergency reserves after an epic price fall.
The world’s biggest crude oil importer is taking advantage of a 60% plunge in crude oil prices this year to buy up cheaper oil barrels for its reserves.
Consequently, Thursday showed optimism on at least one front of the dual issues facing the energy industry.
“I have confidence in both that they’ll be able to work it out,” Trump said yesterday at a White House press briefing.
He also spoke about meeting with oil-industry chief executives, which The Wall Street Journal reported would happen on Friday.
“We don’t want to lose our great oil companies,” President Trump said.
However, the Energy Information Administration stated yesterday that U.S. crude supplies rose by 13.8 million barrels for the week ended March 27, marking a 10th straight weekly increase, showing an oil glut in the world largest economy.