Economic

A call between Trump and Putin raises oil prices

Crude oil prices rose in trading on Tuesday, driven by the announcement of a phone call between US President Donald Trump and Russian Vladimir Putin, to discuss the future of crude prices.

In a televised meeting on Monday evening, Trump said he had discussed with Putin the restoration of stability to the oil market.

Brent crude futures for June delivery rose 2.31 percent, or 60 cents, to $ 27.02 a barrel.

US West Texas Intermediate crude for May delivery, too, increased 6.12 percent, or $ 1.22, to $ 21.30 a barrel.

Trump’s demand for price increases is due to the damage the latter has caused to shale oil production in the United States, with an average cost per barrel of production of $ 20.

The oil markets are witnessing an increasing supply of crude due to the decline in global demand on the one hand, driven by the economic consequences of the spread of the Corona virus, and the price war between Riyadh and Moscow, after the dissolution of the “OPEC +” coalition, on the other hand.

As of Tuesday morning, the virus had infected more than 785,000 people in 199 countries and territories, over 37,000 of whom had died, while more than 165,000 had recovered.

Crude oil prices fell to their lowest levels in 17 years on Monday, with demand declining due to the Corona pandemic and the threat of the Saudi-Russian price war to flood the market with excess supplies.

Brent crude futures fell 5.8 percent, or $ 1.45, to $ 23.48 a barrel, after falling earlier to $ 23.03, the lowest level since November 2002.

A call between Trump and Putin raises oil prices

The price of West Texas Intermediate crude in the United States fell 3.59 percent, or 79 cents, to $ 20.73 a barrel.

As of Monday morning, the United States – the largest producer and consumer of crude oil – recorded 142.7 thousand cases of Corona virus, which is spreading very quickly, including 2,488 deaths, while 4,591 cases recovered.

The United States produces approximately 13 million barrels of oil per day, while it consumes an average of 17 million barrels.

Oil markets began to collapse weeks ago, with governments around the world imposing travel restrictions and isolation measures to contain the virus,

While major oil producers such as Saudi Arabia and Russia are fighting a price war that led to a rise in reserves and thus a decrease in prices.

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