# Oil surges more than 13% on hopes of output deal

> Oil rose more than 13% in a record one-day rally on prospects of a supply cut of 10% to 15% of world demand. Trump said Russia and Saudi Arabia would negotiate to end their price war, which had cut prices by more than half the previous month, and that the US had not agreed to cut its own output.

- Date: 2020-04-03 · published 2020-04-03T12:00:00.000Z
- Category: geopolitics · region Global · magnitude high
- Page: https://feedsoft.ai/events/5487-oil-surges-more-than-13-on-hopes-of-output-deal
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

The prospect of a large OPEC-Russia supply cut lifts crude and energy costs, which can support biofuel-linked vegetable oils and raise input costs for feed producers. The outcome remains uncertain, so price gains depend on whether a deal is confirmed.

## Read by commodity

- SBO: bullish ▲
- WTI: bullish ▲
- BRENT: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| WTI | 2020-04-05 | 5 | +72.7% | 7.0 | Additional record rally on April 3 on prospects of a supply cut worth 10-15% of world demand. |
| BRENT | 2020-04-07 | 5 | +44.4% | 4.9 | Further 13% rally on April 3 on prospects of a 10-15% supply cut added to the 5-day gain. |
| BRENT | 2020-04-06 | 5 | +40.0% | 4.8 | A further 13% rally on April 3 on prospects of a supply cut added to the 5-day gain. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2024-03-28 | [Oil rises more than $1 a barrel on tighter supply outlook](https://feedsoft.ai/events/31366-oil-rises-more-than-1-a-barrel-on-tighter-supply-outlook.md) | +6.4% | +3.2% |
| WTI | 2020-04-02 | [Oil surges on Trump claim of major Saudi-Russia oil supply deal](https://feedsoft.ai/events/5491-oil-surges-on-trump-claim-of-major-saudi-russia-oil-supply-deal.md) | +23.3% | -2.7% |
| WTI | 2019-06-26 | [Trump's sanctions cut more OPEC oil output than OPEC itself \| Reuters](https://feedsoft.ai/events/58530-trump-s-sanctions-cut-more-opec-oil-output-than-opec-itself-reuters.md) | -2.8% | -3.1% |
| WTI | 2020-04-02 | [Coronavirus: Oil prices surge on hopes of a price war truce](https://feedsoft.ai/events/5485-coronavirus-oil-prices-surge-on-hopes-of-a-price-war-truce.md) | +23.3% | -2.7% |
| WTI | 2019-05-27 | [Oil up more than 1% on Mideast tensions and supply cuts](https://feedsoft.ai/events/59236-oil-up-more-than-1-on-mideast-tensions-and-supply-cuts.md) | -8.5% | -1.9% |
| BRENT | 2024-03-28 | [Oil rises more than $1 a barrel on tighter supply outlook](https://feedsoft.ai/events/31366-oil-rises-more-than-1-a-barrel-on-tighter-supply-outlook.md) | +5.8% | +3.6% |
| BRENT | 2020-04-02 | [Oil surges on Trump claim of major Saudi-Russia oil supply deal](https://feedsoft.ai/events/5491-oil-surges-on-trump-claim-of-major-saudi-russia-oil-supply-deal.md) | +49.5% | +11.2% |
| BRENT | 2019-06-26 | [Trump's sanctions cut more OPEC oil output than OPEC itself \| Reuters](https://feedsoft.ai/events/58530-trump-s-sanctions-cut-more-opec-oil-output-than-opec-itself-reuters.md) | -4.7% | -3.9% |

## Sources

- reuters.com: https://www.reuters.com/article/us-global-oil/brent-crude-rises-above-32-on-hopes-of-oil-output-deal-idUSKBN21K3HZ/?feedName=businessNews&feedType=RSS

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