Oil surges a record 24% after Trump says hell get involved in the global price war at an appropriate time

Reuters

 Oil prices surged Thursday, rebounding from sharp losses Wednesday, after President Donald Trump said he would get involved in the global price war between OPEC and its allies at an “appropriate time.” 

The gains were the best daily performance ever for US crude. Still, prices are down roughly 60% as major producers prepare to ramp up production while the coronavirus pandemic weighs on demand. 

US West Texas Intermediate Crude gained 24% to $25.28 per barrel Thursday afternoon in New York. International benchmark Brent crude gained nearly 14% to $28.26 per barrel at the same time. 

“We are trying to find some kind of middle ground,” Trump said during a press conference Thursday at the White House. “It’s very devastating to Russia because when you look at it, their whole economy is based on that and we have the lowest oil prices in decades so it’s very devastating to Russia.” 

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He continued: “I would say it’s very bad for Saudi Arabia but they’re in a fight, they’re in a fight on price, they’re in a fight on output. At the appropriate time I’ll get involved.”

The global price war between Saudi Arabia and Russia put extra pressure on the oil industry, already reeling as the coronavirus pandemic hits demand as airlines and cruise ships cancel trips and consumers stay home. 

Last week, Trump ordered the US to purchase large amounts of oil for the Strategic Petroleum Reserve, which has a maximum capacity of 77 million barrels, as the price of the commodity plummeted. 

On Thursday, it began the commitment by saying it will buy 30 million barrels of American oil for delivery in May and June. The department is working with Congress to finalize funding to support the total 77-million-barrel purchase, according to a press release.