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Oil prices soared after U.S. President Donald Trump said Saudi Arabia and Russia would make major output cuts. Trump said he had spoken with Saudi Crown Prince Mohammed bin Salman about the market, though the reported cut size was not specified as a daily figure.
Expected large supply cuts from major producers tighten crude availability and lift energy prices. Higher crude raises the cost of diesel, fertilizer and biofuel feedstocks, which supports vegetable oil and feed ingredient prices.
bloomberg.comCatherine NgaiApr 1, 2020After 438 past bullish policy events, Crude Oil (WTI) moved a median +0.9% over 5 sessions (61% higher; middle half -2.2% to +4.6%), and +2.0% over 20.
After 442 past bullish policy events, Crude Oil (Brent) moved a median +1.4% over 5 sessions (60% higher; middle half -2.0% to +4.9%), and +2.1% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Oil soared on Trump's Saudi-Russia output cut claim, contributing to the rebound.
Prices soared on Trump's claim of Saudi-Russia cuts, contributing to sentiment-driven rally.
