Oil retreated Friday after massive gains, while shares in Asia inched down, as doubts grew over an oil price settlement between Saudi Arabia and Russia that U.S. President Trump stated he had brokered.
With the coronavirus pandemic raising the risk of a global downturn, investors continued to seek the safety of the U.S. greenback and government bonds, pushing U.S. Treasuries yield near their lowest in three weeks.
U.S. West Texas Intermediate (WTI) crude lost $1.14, i.e., 4.5% to $24.18 a barrel in early Asian trade after having surged a record 24.7% Thursday.
Trump stated Thursday he had spoken to Saudi Crown Prince Mohammed bin Salman and expects Saudi Arabia and Russia to cut oil production by up to 10 million to 15 million barrels, as the two nations signaled willingness to settle the price war.
Saudi Arabia stated it would hold an emergency meeting of the Organization of the Petroleum Exporting Countries (OPEC), Saudi state media reported.
The amount Trump talked about would represent an unprecedented cut amounting to 10% to 15% of global delivery if he meant production per day – a common unit of measurement.
In early March, talks over production reductions between the two nations collapsed, main them to trigger a price war that pushed oil prices to the lowest levels in practically 20 years.