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Oil price surges 24% after a big plunge

Posted March. 21, 2020 07:41,   

Updated March. 21, 2020 07:41


Oil prices rebounded Thursday after plunging to the lowest level in 18 years on the previous day. The sharp rebound came after U.S. President Donald Trump said he may intervene in the Saudi-Russian oil price war.

U.S. West Texas Intermediate (WTI) futures rose 23.81% to close at 25.22 dollars per barrel on Thursday, marking the biggest single-day gain since trading began. Brent oil futures also jumped 14.43% to close at 28.47 dollars.

International crude oil prices have been hit by the spread of COVID-19. For the past two weeks, expectations of slowing oil demand had a significant impact on the prices of WTI and Brent futures, resulting in a plunge of over 40%. The other factor fueling the plunge in crude oil prices is increasing oil production by major producers despite falling energy demand.

The OPEC+ meeting was held on March 6 to discuss production cuts but failed to make an agreement as Russia refused to cut output. After the meeting, Saudi Arabia hinted that it would boost oil production.