Twist: oil, which has sunk to an 18-year low in recent weeks (falling to around $20 a barrel, less than the price of grain in Russia), goes back downhill and drags the Stock Exchanges upwards. At the beginning of the day, both Brent and WTI recorded double-digit increases, respectively returning above 27 and above 22 dollars a barrel, after US President Donald Trump said he expected soon an agreement between Saudi Arabia and Russia to end the price war. The tycoon also announced a meeting with US oil executives for Friday 3 April to discuss how to help the domestic industry, hit by the effects of the coronavirus pandemic and, before that, by the price war between Saudi Arabia and Russia.
“I will meet the oil producers on Friday. I will also meet with independent oil producers on Friday or Saturday. Maybe Sunday. We will have many meetings on this issue,” Trump told reporters at a news conference. “Around the world, the oil industry has been devastated. This hurts Russia a lot, it hurts Saudi Arabia a lot. I mean, it's very bad for both of us. I think they will make a deal." The Reuters agency, quoting a Gulf source, wrote that Saudi Arabia would like to support cooperation among oil producers to stabilize prices, but Russia's opposition to a similar proposal made last month, ie to further reduce extraction, has caused severe turbulence on the market.
In short, something is moving and the reaction of energy stocks in Piazza Affari was not long in coming: the best stocks in the mid-morning are not surprisingly Saipem, Eni and Tenaris, which with gains around between 5,5% and over 7% drag the Ftse Mib incidence upwards (+1%). Snam also did well in the energy sector, gaining almost 3% in the mid-morning. The best share overall is that of Saipem, which stands out with more than 7%, after losing 30% in the last month precisely because of the effects of the crisis.
