By Adedapo Adesanya
Oil prices rose close to 25 percent on Thursday afternoon after the United States President, Mr Donald Trump, posted a comment on his Twitter page.
The American President wrote, “Just spoke to my friend MBS (Crown Prince) of Saudi Arabia, who spoke with President Putin of Russia, & 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!” President Trump tweeted on Thursday.
He added, “…..Could be as high as 15 Million Barrels. Good (GREAT) news for everyone!” he added in a follow up.
The tweet confirmed that the US President had reached a sort of agreement with the Saudi Crown Prince, and hoped and expected that Saudi Arabia and Russia would cut between 10 to 15 million barrels.
And this news, sent major futures surging more than 20 percent. Brent crude is currently up by 24.78 percent to $30.87 per barrel, while the US West Texas Intermediate (WTI) rose by 27.77 percent to $25.34 per barrel.
On its part, according to the Saudi’s official news agency, Saudi Press Agency, the Kingdom is calling for an urgent meeting for OPEC+ states and another group of countries, which hints that a possible alliance could be in the works again.
In a series of tweet, they wrote – “The Kingdom calls for an urgent meeting for OPEC+ states and another group of countries, with aim of reaching a fair solution to restore a desire balance of the oil markets.
“This invitation comes within framework of the Kingdom’s constant efforts to support the global economy in this exceptional circumstance, and in appreciation of the US President’s request and the US friends’ request,” the agency wrote.
Dipo Olowookere