Oil Prices Up 25%... Trump Says "Saudi and Russia Will Agree on Production Cuts"

[Image source=EPA Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] U.S. President Donald Trump said that Saudi Arabia and Russia have agreed to cut oil production by 10 million barrels. International crude oil prices surged 30% on this news.

On the 2nd (local time), President Trump told CNBC, "Mohammed bin Salman, Crown Prince of Saudi Arabia, and Vladimir Putin, President of Russia, will agree to production cuts." President Trump expected the cut to be around 10 million barrels but also expressed hope that it could expand to 15 million barrels.

In his tweet, President Trump also stated, "I just spoke with my friend Crown Prince Salman, who I spoke to after talking with President Putin. If the two countries agree on production cuts, it will be good for the oil industry."

Following President Trump's remarks, international oil prices have surged sharply. West Texas Intermediate (WTI) crude oil on the New York Mercantile Exchange traded at $25.32, up 24.67% from the previous day. North Sea Brent crude is also rising by about 20%.

Last week’s U.S. initial jobless claims, announced on the same day, reached 6.6 million, causing a weak start for the U.S. stock market. However, supported by President Trump’s remarks and rising oil prices, the market reversed to a 1.3% gain.