Crude Oil Breaks Higher Talking Points:
- Trump commented that Russia and Saudi Arabia plan to cut production
- Saudi Arabia calls for emergency OPEC+ meeting
- USDCAD modestly lower on higher oil price prospects
Crude oil exploded higher Thursday morning as US President Trump commented that Saudi Arabia and Russia appear set to cut oil production by at least 10 million barrels per day.The comments from the President stated that the cuts could be as high as 15 million barrels per day.
Crude Oil (1-Min Chart)
Source: IG Charts
Following Trump’s comments, Saudi Arabia called for an emergency OPEC+ meeting according to Saudi Arabia’s state run news agency. Oil linked currencies such as USD/CAD dropped as news of the prospective production cuts crossed the wires.
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The news comes at a welcome time for oil producers as prices of WTI crude neared $20 USD per barrel, the lowest in years. Oil prices collapsed in March as OPEC+ and Russia failed to come to an agreement regarding production cuts. Moscow indicated previously that they would flood the market with oil, prompting an oil price war.