# Oil surges on Trump claim of major Saudi-Russia oil supply deal

> Oil prices surged on April 2, 2020, after Trump tweeted that Saudi Arabia and Russia were preparing to cut production by 10 million to 15 million barrels a day, but much of the gain faded as neither country confirmed it. Saudi Arabia called for an urgent OPEC+ meeting, and a WSJ report said Riyadh would consider large curbs if others joined.

- Date: 2020-04-02 · published 2020-04-02T12:00:00.000Z
- Category: geopolitics · region Global · magnitude high
- Page: https://feedsoft.ai/events/5491-oil-surges-on-trump-claim-of-major-saudi-russia-oil-supply-deal
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md)

## Why it matters

The possibility of a major OPEC+ supply cut supports crude and energy costs, but the lack of confirmation limits the durability of the move. Continued weak demand from the coronavirus outbreak still pressures prices.

## Read by commodity

- WTI: bullish ▲
- BRENT: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| BRENT | 2020-04-02 | 1 | +35.2% | 5.0 | Trump's tweet about 10-15M bpd cuts and Saudi call for an urgent OPEC+ meeting spiked prices on April 2 despite lack of confirmation. |
| WTI | 2020-04-02 | 1 | +19.9% | 3.1 | Trump's claim of a 10-15 million bpd Saudi-Russia cut and the Saudi call for an urgent OPEC+ meeting drove the surge, though doubts capped some gains. |
| WTI | 2020-04-05 | 5 | +72.7% | 7.0 | Describes the Trump-announced supply-cut surge and the Saudi call for an urgent OPEC+ meeting, though part of the gain faded. |
| BRENT | 2020-04-06 | 5 | +40.0% | 4.8 | Trump's tweet on major supply cuts and Saudi's call for an urgent OPEC+ meeting drove the surge, though gains partly faded. |
| BRENT | 2020-04-07 | 5 | +44.4% | 4.9 | Trump's tweet on Saudi-Russia cuts and Saudi call for urgent OPEC+ meeting fueled the surge, though gains partly faded without confirmation. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2019-09-16 | [Oil surges as Saudi attack focuses market on supply risks](https://feedsoft.ai/events/5707-oil-surges-as-saudi-attack-focuses-market-on-supply-risks.md) | +5.8% | -0.1% |
| WTI | 2020-04-02 | [Oil surges 24% for best day on record after Trump tells CNBC Saudis, Russia reach agreement](https://feedsoft.ai/events/5486-oil-surges-24-for-best-day-on-record-after-trump-tells-cnbc-saudis-russia-reach.md) | +23.3% | -2.7% |
| 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 | 2022-03-17 | [Oil surges 8% amid warnings of Russian supply shortages \| Reuters](https://feedsoft.ai/events/8482-oil-surges-8-amid-warnings-of-russian-supply-shortages-reuters.md) | +21.1% | +9.8% |
| 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% |
| BRENT | 2019-09-16 | [Oil surges as Saudi attack focuses market on supply risks](https://feedsoft.ai/events/5707-oil-surges-as-saudi-attack-focuses-market-on-supply-risks.md) | +6.6% | -0.3% |
| BRENT | 2020-04-02 | [Oil surges 24% for best day on record after Trump tells CNBC Saudis, Russia reach agreement](https://feedsoft.ai/events/5486-oil-surges-24-for-best-day-on-record-after-trump-tells-cnbc-saudis-russia-reach.md) | +49.5% | +11.2% |
| BRENT | 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) | +2.5% | -10.2% |

## Sources

- axios.com: https://www.axios.com/2020/04/02/oil-surges-trump-claim-saudi-russia-oil-supply-deal

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