Oil prices gave up their gains yesterday, and bounced back toward decline, supported by Russia's refusal to interfere with America to mediate between it and Saudi Arabia in relation to oil prices. Prices recorded a significant increase in the beginning of trading yesterday, with the support of pumping the world's wealthiest countries to support an unprecedented support in the global economy, to stop a recession driven by the Corona virus, and the American President Donald Trump's suggestion that he might interfere in the competition for prices between Russia and Saudi Arabia.
However, the announcement of the "Kremlin" was rejected by American mediation, which pushed oil to abandon its gains, and prices began to decline. For his part, the "Kremlin" announced yesterday that the relations between Russia and Saudi Arabia are good in relation to oil markets, and that Moscow does not want anyone to interfere.
A Kremlin spokesman, Dmitry Peskov, said there was no need for anyone to interfere.
Peskov added that the low oil prices are not satisfactory, but Russia does not think the current situation is catastrophic. He pointed out that Moscow has sufficient government reserves to meet the economic impact of weak commodity prices.
Brent crude futures fell to $ 28.15 a barrel, after the Kremlin rejected US mediation. And "Brent" headed towards a weekly loss of more than 16%, and a weekly decline is the fourth in a row.
US crude futures for April delivery fell 2.8% to $ 24.5 a barrel.
US West Texas Intermediate, the most active delivery contract in May, fell to $ 25.2 a barrel.
With the spread of the Corona virus, which led to the suspension of activities in most of the countries of the world, countries are pumping more stimulus into their economies, while central banks are flooding markets with dollars at a cheap price, to ease funding pressures. US crude and Brent crude prices have tumbled nearly 40% in the past two weeks, since talks between the Organization of Petroleum Exporting Countries (OPEC) and its allies, including Russia, collapsed, which led to Saudi Arabia boosting production.