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Oil prices surge on hopes for production cuts

Xinhua News,NEW YORK
2020-04-03 04:48

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Oil prices rallied on Thursday as market participants regained hopes for possible output cuts by major producers.

The West Texas Intermediate for May delivery soared 5.01 U.S. dollars to settle at 25.32 dollars a barrel on the New York Mercantile Exchange, while Brent crude for June delivery jumped 5.20 dollars to close at 29.94 dollars a barrel on the London ICE Futures Exchange.

The market movement came after U.S. President Donald Trump made optimistic remarks, indicating that Saudi Arabia and Russia would reach a production cut agreement.

Trump tweeted Thursday that he expects a cutback of "approximately 10 Million Barrels, and maybe substantially more."

Saudi Arabia on Thursday called for an urgent meeting for OPEC+ group and other countries, the Saudi Press Agency reported.

The meeting aims at reaching a fair agreement to restore the desired balance of oil markets, it said.

Last month, a failure to strike a deal on oil production cuts between the Organization of the Petroleum Exporting Countries (OPEC) and its allies, led by Russia, had sent oil prices to a nosedive and sparked fears of a possible price war.
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