Yahoo Finance Trump will host oil execs Friday, addresses market slump
President Trump is set to meet with oil executives at the White House to discuss the oil-price slumps impact on business and the Saudi-Russia price war.
Video Transcript
ADAM SHAPIRO: So I want to talk about what's happening with oil. Yesterday, we got news of a potential cease fire, you might call it, between Saudi Arabia and Russia. We saw oil prices surge, still, you know, what, below $30 a barrel. But Jared Blikre is joining us now to help explain where we're going to go from here with oil. Jared.
JARED BLIKRE: That's right. Yesterday was a historic day for oil. On a percentage basis, 25%, that's the biggest ever. But as you noted, we're still well below $30 here per barrel, and the Saudis and OPEC plus, that means Russia as well, are supposed to have a virtual meeting on Monday. That would be early.
And it doesn't look to me like the market is that enthusiastic about this. I think the cuts are going to have to be much deeper, going to 15, probably more like 20 million barrels. And I'd also add that the Saudis yesterday said they want the United States and other non-OPEC-plus nations to join in this. And Kudlow seemed to be walking away from that just a little bit this morning, saying that the US talks to both to Russia and Saudi Arabia separately.
If there is no deal, you can expect the price of crude to just crash at this point. It's a matter of saving face because the parties involved, the Saudis and Putin and President Trump himself, all want to walk out of this without having the blame laid at their feet. So let's take a look at the price action here.
This is today. We were trending upwards when we got the payroll announcement, and we continued to surge. But now we're just a little bit off the highs here.
But over the last five days, you can see we're up 30% or more. And that is a pretty big climb from that $20 per barrel floor that we saw. But again, this deal needs to get done, and it needs to get done big. And at this moment, we just-- at least, I'm not seeing the pieces fall together.
Just a quick look at the energy sector today, kind of seeing a mixed picture. Some are up big. Some are down big. But overall, if you compare this to the last year, this is year to date, just a grim picture. Adam.
