Thursday, April 2, 2020

Trump, Oil CEOs to meet as crude tumbles

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President Trump is set to meet Friday with the heads of some of the largest U.S. oil companies to discuss government measures to help the industry weather an unprecedented oil crash, people familiar with the matter said. ⁣ ⁣The meeting is to take place at the White House and will include Exxon Mobil Corp. Chief Executive Darren Woods, Chevron Corp. Chief Executive Mike Wirth, Occidental Petroleum Corp. Chief Executive Vicki Hollub and Harold Hamm, executive chairman of Continental Resources Inc., the people said. ⁣ ⁣The U.S. oil and gas industry has been pummeled recently by the dual shock of plummeting oil demand because of the coronavirus pandemic and surging supply as Russia and Saudi Arabia are locked in a price war and flood the market with crude. ⁣ ⁣Oil prices plunged this week to just above $20 a barrel, the lowest level in nearly two decades.

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Oil prices soared Thursday after President Trump said he expects and hopes Saudi Arabia and Russia will be making huge cuts to their oil production in order to restore calm to the market. ⁣ ⁣West Texas Intermediate crude oil, the U.S. benchmark, surged by as much as 35 percent to $25.32 a barrel, while Brent crude oil, the international benchmark, jumped 47 percent to $36.29. Both energy components pared their gains, but were still trading up more than 23 percent. ⁣ ⁣“I expect & hope that they will be cutting back approximately 10 Million Barrels, and maybe substantially more which, if it happens, will be GREAT for the oil & gas industry!” Trump tweeted in regards to Saudi Arabia and Russia.

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U.S. equity markets, in a volatile session, rallied Thursday afternoon after global oil prices posted the biggest one-day gain ever after President Trump said Russia and Saudi Arabia will likely cut oil production. ⁣ ⁣The Dow Jones Industrial Average rose over 469 points or over 2.2 percent, the S&P 500 also gained 2.2 percent while the Nasdaq Composite rose 1.72 percent. ⁣ ⁣Stocks took their lead as the U.S. oil benchmark surged by 24.67 percent to $25.32 - the biggest gain since record-keeping began in March of 1983 as tracked by the Dow Jones Market Data Group. ⁣ ⁣Brent, the global benchmark, saw the same action rising 21.02 percent to $29.94 per barrel. ⁣ ⁣Following Trump's announcement Saudi Arabia called on OPEC members, their allies and other countries to hold an urgent meeting "with aim of reaching a fair agreement to restore the desired balance of oil markets."

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