Efforts are being made between US and Saudis to maintain oil prices

Ross J Burland FXStreet

The Saudi Crown Prince discussed efforts to maintain stability of global energy markets with US State Sec. Pompeo in a phone call. The price of oil is a little firmer on the headline within a $22.94-$25.20bbls range for the day in WTI, +1.92%. Earlier, the oil prices were sturdy due to the US benchmark extending their gains amid hope for a coronavirus rescue package.

Traders have been concerned that the COVID-19 shutdowns have led to less travel, and less demand for fuel. Earlier, May West Texas Intermediate oil CLK20 climbed by 48 cents, or 2%, to settle $24.49 a barrel on the New York Mercantile Exchange.

Analysts at TD Securities argued that further storm clouds loom on the horizon. "While the potential for a New Global OPEC+ would be very constructive long term, the demand-side impact of Covid would nonetheless vastly outweigh a potential curtailment agreement in the short term."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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