Gulf source: Saudi wants cooperation to bolster oil, blames Russia for turmoil – Reuters

Amid the early Thursday, Reuters came out with the news, while relying on a senior Gulf source familiar with Saudi thinking, which ignites a ray of hope for the oil traders. The news said Saudi Arabia supports cooperation between oil producers to stabilize the oil market but Russia’s opposition to a proposal last month to deepen oil supply cuts has caused market turmoil.

Key quotes

U.S. President Donald Trump said on Wednesday he had talked recently with both Saudi and Russian leaders and believed the two countries would make a deal to end their price war within a few days - lowering production and bringing prices back up.

Saudi Arabia has always welcomed and supported cooperation among oil producers in their efforts to stabilize the oil market during the current crisis based on the principles of fairness and equity.

It was Russia’s position that triggered the collapse of the OPEC+ agreement... this caused massive instability in oil markets.

Market implications

Although there was no major reaction to the news, WTI extends its recovery gains beyond $21.00, currently around $21.15, after the update.