Trump to meet with major US energy company CEOs

US President Donald Trump will meet with CEOs from major US energy companies Friday at the White House to discuss falling prices due to collapsing demand during the coronavirus outbreak.

Oil prices also have been hammered by the price war between Saudi Arabia and Russia that has flooded the world with cheap oil. But they surged and set off a rally in shares of energy companies after Trump said in a tweet on Thursday that he expected Saudi Arabia and Russia to substantially cut their oil production to halt collapsing prices.

Brent crude oil, the global benchmark, surged 21 percent Thursday in its largest one-day percentage gain on record, based on data dating to June 1988.

The energy sector climbed 9 percent, leading the S&P 500's gains.

The potential easing in the oil price war helped the Dow Jones Industrial Average gain 2.2 percent, about 470 points, after it had declined more than 900 points on Wednesday.

The S&P finished 2.3 percent higher, and the Nasdaq Composite closed up 1.7 percent.

Trump said that he spoke with Saudi Arabia's Crown Prince Mohammed bin Salman, who had spoken with Russian President Vladimir Putin.

"I expect & hope that they will be cutting back approximately 10 million barrels," he said in the tweet. That would represent about 10 percent of normal world consumption. Trump later said the cut could be as much as 15 million barrels.

Saudi Arabia called Thursday for an urgent meeting of the Organization of the Petroleum Exporting Countries (OPEC) and other oil-producing countries with the "aim of reaching a fair agreement to restore" balance in the oil markets. The Saudis said in a statement that they were acting to support the global economy and in "appreciation" of Trump's request.

A spokesman for Putin denied that he had spoken to the Saudi crown prince, as Trump had said in his Twitter message. "No, there was no conversation," Dmitri S. Peskov told the Interfax news agency.

For some smaller companies, including independent hydraulic frackers, oil's price drop makes it difficult to break even.

The American Petroleum Institute (API), a Washington-based trade organization, said it helped organize the meeting, but the energy industry isn't seeking financial assistance.

"Natural gas and oil will be critical to our nation's economy recovering," the lobbying group said in a statement. "We are not seeking any government subsidies or industry-specific intervention to address the recent market downturn at this time."

The White House meeting will include executives from Exxon Mobil, Chevron, Occidental Petroleum, Devon Energy, Conoco Phillips, Energy Transfer Partners and Continental Resources, according to The Wall Street Journal.

Major oil companies and independent frackers disagree about the necessity or wisdom of direct government intervention, making a broad agreement unlikely.

Some independents are deeply in debt while major oil companies remain strong, despite recent declines in their stock prices.

Citing an unnamed "senior US official", the Journal said Trump may consider smaller actions, including a wavier of a requirement that American ships be used to transport cargo, including oil, between US ports.

Oil prices also have been hammered by the price war between Saudi Arabia and Russia, which has flooded the world with cheap oil.

Earlier this week, US Energy Secretary Dan Brouillette met with Russian Minister of Energy Alexander Novak, but a quick resolution of the issue appears unlikely.

"Secretary Brouillette and Minister Novak discussed energy market development and agreed to continue dialogue among major energy producers and consumers, including through the G20, to address this unprecedented period of disruption in the world economy," the Energy Department said in a statement.

The discussion followed a telephone conversation between Trump and Putin, according to news reports.