Potentially Great News For Oil

Posted: Apr 02, 2020 1:28 PM
Potentially Great News For Oil

Source: AP Photo/Jose Luis Magana

Donald J. Trump @realDonaldTrump 10:32

Just spoke to my friend MBS (Crown Prince) of Saudi Arabia, who spoke with President Putin of Russia, & I expect & hope that they will be cutting back approximately 10 Million Barrels, and maybe substantially more which, if it happens, will be GREAT for the oil & gas industry!

Donald J. Trump @realDonaldTrump 10:55

.....Could be as high as 15 Million Barrels. Good (GREAT) news for everyone!

Big percentage spike for West Texas Intermediate (WTI) on a series of tweets from President Trump on the possibility of a significant cut on crude output.  The first tweet suggested Saudi Arabia and Russia might be cutting back ten million barrels, then a half hour later,  he suggested it could be as high as 15.0 million barrels. 

WTI ran into some resistance just north of $25.00.  The real upside test comes around $27.70, which was resistance on March 20 and support on March 9.

See the crude oil chart here.

All the major indices are higher, but oil names dominate the top percentage gainers list.  Other winners also taking their cue from Washington, D.C. scuttlebutt.  There is increasing talk of an infrastructure bill coming soon, either as a stand-alone bill or part of the next coronavirus rescue package.