Oil prices have jumped by over 20% to USD 31,62 (Brent) after Saudi Arabia called for an emergency of OPEC and its allies including Russia and President Donald Trump tweeted about possible production cuts of up to 15 million barrels.

Saudi Arabia has called for an emergency meeting of OPEC and its allies to “reach a fair oil agreement” to stabilize the market, reports Reuters.

US President Donald Trump shortly after tweeted that he spoke with Crown Prince Mohammed bin Salman and said he expects production cuts.

“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!”, Trump tweeted.

“…..Could be as high as 15 Million Barrels. Good (GREAT) news for everyone!”, he added in a second tweet.

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) April 2, 2020

Oil price drop

The price of Brent oil had already dropped steadily from USD 69 per barrel at the start of the year to USD 52 beginning of March as a result of the coronavirus. But after Saudi Arabia failed to convince Russia to back deep production cuts, the oil price came crashing down below USD per barrel as Riyadh decided to flood the market with oil to put pressure on Russia. After hovering around USD 25 per barrel for the last few weeks, the price for Brent oil has now climbed back up to over USD 30 on the back of the emergency meeting and rumoured production cuts.