Oil prices are closing the week on a high after a shaky week that saw prices fall to the lowest levels that have been witnessed over the past 18 years.
The oil industry might be experiencing a recovery after a challenging week where record low oil prices have been making headlines. This time there is positive news about oil prices after Friday’s surge which was influenced by the expectations of a production cut agreement by industry players. The situation in the oil industry was so concerning earlier this week that OPEC held an emergency virtual meeting with its allies on Monday.
The rally in the oil prices also comes after the phone call between Russian President, Vladimir Putin and U.S President, Donald Trump in which they discussed the declining oil prices. Trump has also been very vocal about helping to stabilize the oil industry and has particularly made comments about the price wars between Russia and Saudi Arabia which also another factor that contributed to the declining oil prices.
Trump said on Thursday that he expects Saudi prince Mohammed bin Salman and Russia’s Putin to agree on oil production cuts as a means to remedy the situation. Trump’s statement contributed to a significant uptick in oil prices.
WTI Oil experienced a noteworthy price surge especially on Thursday following the announcement of the OPEC teleconference meeting and also the comments made by President Trump. WTI Oil seems to have entered a clear recovery mode since Wednesday with the lowest price level on that day at $21.867 and then a major surge took place on Thursday when the price rallied to a high of $29 before pulling back to close the day at $26.337.
The price regained its bullish momentum on Friday and even achieved a high of $30.074 before hovering slightly lower than the day’s high. Brent Oil has also experienced a significant price surge with the price at the time of this press at $34.638 although the day’s high was $35.274.