The international oil benchmark, Brent crude, halted its losing streak, on Thursday, trading around $28 per barrel, as the United States, US, President, Donald Trump, stated that he may intervene in the price war between Saudi Arabia and Russia.
Brent, against which Nigeria’s crude is priced, fell to a 17-year low of $24.89 per barrel, on Wednesday, but rose to $28.78 per barrel, on Thursday, as at 7:50pm Nigerian time.
Oil prices surged the most since 2008, as Middle East producers began to show signs of strain, and as the US President said that he would get involved in the oil price standoff at the ‘appropriate time’, according to Bloomberg.
Prices are still down almost 60 percent this year, with the slide accelerating following a failed meeting by the Organisation of Petroleum Exporting Countries, OPEC, and its Allies, in early March, after which major producers pledged to pump more in a battle for market share, just as the coronavirus crisis crushed demand.
Trump said that he is searching for ‘medium ground’ in the oil price war.
“It is very devastating to Russia, because the whole economy is based on that, and they have the lowest prices in decades. I would say it is very bad for Saudi Arabia. But they are in a fight, they are in a fight on price, they are in a fight on output. At the appropriate time, I will get involved”, Trump said.
Earlier, the US stated that it would kick off its commitment to fill the Strategic Petroleum Reserve, by buying 30 million barrels of American oil.