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Oil prices strongly rebounded after United States President Donald Trump and Russian President Vladimir Putin finally decided to meet and talk about global energy markets on Tuesday. Oil markets have plunged to 18-year lows shortly after the coronavirus pandemic decreased fuel demands all around the world.
Brent oil price LCOc1 jumped to 30 cents, at $23.06 per barrel by 6:35 GMT. It was closed on Monday at $22.76, which is its lowest level since November 2002. U.S. oil price Clc1 also jumped to $1.21, at $21.30 per barrel. The price settled down at $20.09, the lowest close since February 2002.
The crisis worsened after Saudi Arabia and Russia declared a price war after reducing output to support energy markets in early March.
The two presidents discussed oil prices over a phone call which caused a big impact to the oil markets.
“Oil prices are clawing back from a near 18-year low on hopes that oversupply concerns may finally see some relief,” stated by Edward Moya, a senior market analyst at broker OANDA.
“Much of the focus has fallen on a key call between the Presidents of the United States and Russia.”
Since a contango market is expected to happen in the near future, traders were encouraged to invest in oil markets for later sales.
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