Crude oil prices recovered further and traded above the psychological threshold of $30 per barrel on Friday after historical lows during the week.
Despite the continuing pressure on oil prices due to coronavirus-related low demand coupled with the risk of economic recession, Brent crude traded at $30.64 a barrel on Friday at 1225 GMT. This marked a 7.62% increase compared to Thursday's closing price of $28.47 per barrel. The benchmark closed Wednesday at $24.88 per barrel dipping below $25.
American benchmark West Texas Intermediate (WTI) was at $26.73 a barrel at the same time for a 5.98% rise compared to the previous close of $25.22 per barrel.
Crude prices were given a boost after the U.S. government announced plans to buy 30 million barrels of oil from producers by the end of June amid a financial downturn in the industry.
Texas state oil regulator also announced that it is considering curbing crude production for the first time in half a century. The Texas oil regulator last imposed cuts on Texas oil production in March 1972, when it allowed all wells in the state to flow at 100% of their capacity for the first time since the end of World War II.
Although not specifying measures, U.S. President Donald Trump, at a White House press conference on Thursday, also hinted that he would intervene in the oil price war between Saudi Arabia and Russia “at the appropriate time.”
Meanwhile, pressure on prices continues as Saudi Arabia and Russia are projected to ramp up output starting April 1.
By Ebru Sengul Cevrioglu