02.04.202010:39:00UTC+00Oil Prices Soar 10% On Hopes Of Truce In Price War

Oil prices soared around 10 percent on Thursday after U.S. President Donald Trump said that a price war between Saudi Arabia and Russia could end soon.

Speaking at a White House press briefing on Wednesday, Trump said that he expected Saudi Arabia and Russia to reach a deal soon as he spoke with both countries' leaders.

"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," said Trump.

Meanwhile, speaking at a government meeting on Wednesday, Russian President Vladimir Putin called for global oil producers and consumers to address "challenging" oil markets and find a solution that would improve the situation.

Benchmark Brent crude jumped as much as 10.4 percent to $27.34 per barrel, while U.S. West Texas Intermediate (WTI) crude futures were up 9.8 percent at $22.30.

Analysts say that prices may also have been boosted by expectations that American shale oil producers, which have relatively high production costs, are coming under pressure to cut production.