# Coronavirus: Oil prices surge on hopes of a price war truce

> Oil prices jumped more than 20% on April 2, 2020, the largest one-day gain on record, after signs Saudi Arabia and Russia might end their price war. Trump said he expected the two to cut supply by 10 million barrels or more, and Saudi Arabia called for an emergency producer meeting. Brent rose 21% to $29.94 and WTI jumped almost 25% to $25.32.

- Date: 2020-04-02 · published 2020-04-02T12:00:00.000Z
- Category: geopolitics · region Global · magnitude high
- Page: https://feedsoft.ai/events/5485-coronavirus-oil-prices-surge-on-hopes-of-a-price-war-truce
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [ULSD / Diesel](https://feedsoft.ai/c/DIESEL.md)

## Why it matters

A coordinated supply cut of that size would tighten crude markets and lift energy costs, which feed through to diesel, fertilizer and freight. Higher crude also tends to support vegetable oil and biofuel-linked prices, while the collapse in oil had weighed on those.

## Read by commodity

- WTI: bullish ▲
- BRENT: bullish ▲
- DIESEL: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| BRENT | 2020-04-02 | 1 | +35.2% | 5.0 | Record one-day jump on April 2 on hopes of a Saudi-Russia price war truce and a 10M+ bpd supply cut is the direct supply-side/sentiment driver of Brent's ~21-35% move. |
| WTI | 2020-04-02 | 1 | +19.9% | 3.1 | Reports the record 20%+ one-day gain on hopes of a Saudi-Russia price war truce and an emergency producer meeting call. |
| BRENT | 2020-04-07 | 5 | +44.4% | 4.9 | Record one-day Brent gain of ~21% on April 2 on hopes of a Saudi-Russia truce and supply cuts directly drove the 5-day surge (sentiment/supply). |
| WTI | 2020-04-05 | 5 | +72.7% | 7.0 | Record one-day surge on April 2 on price-war truce hopes and an emergency producer meeting call (supply outlook). |
| BRENT | 2020-04-06 | 5 | +40.0% | 4.8 | Record one-day gain on April 2 (Brent +21% to $29.94) on hopes of a Saudi-Russia price war truce was the main driver of the 5-day rally. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2020-04-02 | [Oil rallies as Trump talks up truce hopes for Saudi-Russia price war](https://feedsoft.ai/events/5490-oil-rallies-as-trump-talks-up-truce-hopes-for-saudi-russia-price-war.md) | +23.3% | -2.7% |
| WTI | 2020-04-12 | [OPEC+ finalizes oil cut deal, halting a bruising price war, but coronavirus pain to linger](https://feedsoft.ai/events/53544-opec-finalizes-oil-cut-deal-halting-a-bruising-price-war-but-coronavirus-pain.md) | -19.9% | +5.3% |
| WTI | 2020-04-13 | [OPEC, Russia approve biggest-ever oil cut to support prices amid coronavirus pandemic](https://feedsoft.ai/events/53540-opec-russia-approve-biggest-ever-oil-cut-to-support-prices-amid-coronavirus.md) | -19.9% | +5.3% |
| WTI | 2020-04-03 | [Oil surges more than 13% on hopes of output deal](https://feedsoft.ai/events/5487-oil-surges-more-than-13-on-hopes-of-output-deal.md) | -9.4% | -19.0% |
| WTI | 2025-06-13 | [Oil prices surge after Israel's strike on Iran \| CBC News](https://feedsoft.ai/events/10997-oil-prices-surge-after-israel-s-strike-on-iran-cbc-news.md) | +10.2% | +1.1% |
| BRENT | 2020-04-02 | [Oil rallies as Trump talks up truce hopes for Saudi-Russia price war](https://feedsoft.ai/events/5490-oil-rallies-as-trump-talks-up-truce-hopes-for-saudi-russia-price-war.md) | +49.5% | +11.2% |
| BRENT | 2020-04-12 | [OPEC+ finalizes oil cut deal, halting a bruising price war, but coronavirus pain to linger](https://feedsoft.ai/events/53544-opec-finalizes-oil-cut-deal-halting-a-bruising-price-war-but-coronavirus-pain.md) | -6.7% | +8.6% |
| BRENT | 2020-04-13 | [OPEC, Russia approve biggest-ever oil cut to support prices amid coronavirus pandemic](https://feedsoft.ai/events/53540-opec-russia-approve-biggest-ever-oil-cut-to-support-prices-amid-coronavirus.md) | -6.7% | +8.6% |

## Sources

- bbc.com: https://www.bbc.com/news/business-52115442

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.