Crude oil prices tanked on Friday despite several countries and central banks announcing relief packages to help limit the economic impact of the coronovirus pandemic.
Additionally, the U.S. President Donald Trump hinted about stepping in to halt the price war between Russia and Saudi Arabia, the two nations.
Russia and Saudi Arabia have started a price war following the recently concluded OPEC+ meeting failing to agree on deepening crude output reductions.
West Texas Intermediate Crude oil futures for April ended down $2.69, or about 11%, at $22.53 a barrel on expiration day.
WTI Crude oil futures later sank deeper to $19.46, losing more than 22%.
Brent crude futures were down $1.25, or about 4.4%, at $27.22 a barrel a little while ago.
On Thursday, WTI crude oil futures for April ended at $25.22, up $4.85, or about 23.8%, the biggest single-session gain ever in percentage terms.
At a White House news conference on Thursday, Trump indicated he could intervene in the price war between Saudi Arabia and Russia at the appropriate time, and that he was searching for “medium ground” to break the deadlock as low prices were hurting the domestic oil industry.
A Texas Railroad Commissioner proposed joining the two countries in cutting 10% of crude output to stabilize the market.
According to the Wall Street Journal, the Trump administration is mulling more direct intervention to bring Moscow and Riyadh back to the table, under pressure from American oil companies to do so amid the lowest U.S. oil prices in 18 years.
The material has been provided by InstaForex Company – www.instaforex.com