Crude price rises on Trump-Kim Jong meeting in May

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Crude prices rose on Friday after U.S. President, Donald Trump and North Korean leader, Kim Jong Un agreed to hold a meeting in May.

The global benchmark for crude, Brent was trading at $63.84 per barrel while the U.S. West Texas Intermediate (WTI) crude was trading at $60.29 per barrel at 0851 GMT.

The crude prices rose on the speculations of the meeting that would take place at a place and date which will be announced later, the White House said, as reported by Reuters.

The North Korean leader said that it will refrain from any kind of nuclear missile testing till the meeting, South Korea’s national chief said after a meeting between Seoul and Pyongyang.

Despite the rise in the prices, both the benchmarks are on a 1 percent and 1.6 percent weekly decline.

United States has emerged as the largest crude exporting country, surpassing Saudi Arabia with its increased shale production.

“It seems only a matter of time before the U.S. becomes the biggest oil producer in the world. The main question which keeps investors busy is when exactly this will be reached,” Hans van Cleef, senior energy economist at Dutch bank ABN Amro, said in a note to investors, as reported by Reuters.

However, the demand for crude will slowdown eventually due to the weather conditions in the Northern Hemisphere and will help in the rise of the crude prices.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow