InvestorQ : Why did the crude oil prices rally so sharply on Thursday despite weak oil demand?
Mary Joseph made post

Why did the crude oil prices rally so sharply on Thursday despite weak oil demand?

Answer
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sara Kunju answered.
5 months ago


On 02 April, the Brent Crude prices were up by 21% at one point of time although the gains were reduced by the end of trading on Thursday. The sharp spike in oil prices was largely driven by Donald Trump admitting that the US would be cooperating with Russia and Saudi Arabia to cut supply by 15 million bbl per day. This is the largest supply cut every undertaken by the oil producers and it could help to stabilize the oil prices and also push it higher as the supply cut would more than take care of the demand compression. If that kind of supply cut takes place, then it would be bad news for the world markets as it would imply that for the first time in history, 3 of the largest producers of oil in the world would be coming together to cartelize supply.