The oil market has managed to pick up some pace in its recovery efforts, after earlier in week plummeting to an 18-year low.
U.S. President Donald Trump was speaking late on Wednesday, detailing how he has invited U.S. oil executives to the White House. The intentions are to discuss ways to help the industry which as he says is “ravaged” by slumping energy demand during the coronavirus outbreak and a price war between Saudi Arabia and Russia.
Trump further noted he recently had discussions with the leaders of both Russia and Saudi Arabia and believes the two countries can make a deal, in order to end their price war within a “few days” - lowering production and bringing prices back up.
I’m going to meet with the oil producers on Friday. I’m going to meet with independent oil producers also on Friday or Saturday. Maybe Sunday. We’re going to have a lot of meetings on it. Worldwide, the oil industry has been ravaged. It's very bad for Russia, it's very bad for Saudi Arabia. I mean, it's very bad for both. I think they’re going to make a deal.
In the FX markets, CAD is benefitting from this recent recovery for oil, there is a key correlation between the two.
Do note, that since the start of the year oil prices have fallen as much as 70%, after trading up at heights of $65 to fall down to lows of $19, when looking specifically at WTI crude.
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