• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 5 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 days Does Toyota Know Something That We Don’t?
  • 2 days America should go after China but it should be done in a wise way.
  • 8 days World could get rid of Putin and Russia but nobody is bold enough
  • 10 days China is using Chinese Names of Cities on their Border with Russia.
  • 11 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 11 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 11 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 10 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 6 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 1 day How Far Have We Really Gotten With Alternative Energy
  • 11 days Putin and Xi Bet on the Global South
  • 11 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
Oil Prices Set to Rise as Global Stock Refills Ramp Up

Oil Prices Set to Rise as Global Stock Refills Ramp Up

China's increased oil inventory building,…

Traders Cautiously Optimistic About Crude

Traders Cautiously Optimistic About Crude

In the forthcoming week, traders…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Oil Prices Retreat After Massive Rally

Following a rally early on Friday supported by U.S. President Donald Trump suggesting he could intervene in the ongoing Saudi-Russia oil price war and by a flow of stimulus from governments to support their economies stricken by the coronavirus pandemic, oil prices resumed their slump on Friday.

At 8:23 a.m. EDT on Friday, WTI Crude was rising 2.97 percent at $26.62, and Brent Crude was up 3.40 percent on the day at $31.25. But by 11:00am, WTI had sank to $25.02, with Brent falling to $30.13.

Oil prices were set for a weekly drop of more than 10 percent for the fourth weekly decline in a row.  

After a panic-driven bloodbath on the markets on Monday, Tuesday, and Wednesday, oil prices staged a relief rally on Thursday, which extended into Friday’s trading after President Trump said on Thursday that “at the appropriate time, I’ll get involved” in the Saudi Arabia-Russia oil price war.

While the U.S. consumer is “very much helped”, the lowest oil prices in years and the oil price war “hurts a great industry and a very powerful industry,” President Trump said, referring to U.S. shale.

Related: Will Putin Risky Oil Gamble Pay Off?

“So it’s very devastating to Russia. I would say it’s very bad for Saudi Arabia, but they were in a fight. They were in a fight on price. They were in a fight on output. And at the — at the appropriate time, I’ll get involved,” he added.

Meanwhile, the coronavirus pandemic is destroying oil demand in major economies in Europe and now in the United States as authorities encourage stay and work from home and discourage domestic travel, ranging from lockdowns in Italy, Spain, and France, to travel advisories elsewhere.

Amid this unprecedented oil demand shock, Saudi Arabia, the United Arab Emirates (UAE), and Russia promise to flood the market with oil to the tune of a combined 4 million bpd next month, when demand could be at its weakest as the pandemic is spreading. This week’s volatility and lowest prices in nearly two decades may not be the bottom, with some analysts saying oil prices in the teens are not far off. Paul Sankey, managing director at Mizuho Securities, said “Oil prices can go negative” in a note this week, as carried by Fox Business.

By Tsvetana Paraskova for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News