The President of US has spoken to Saudi crown prince Mohammed bin Salman. As Saudi Arabia and Russia signalled a willingness for a deal, Donald Trump expects both countries to cut oil output by as much as 15 million bpd. The oil output cut would be about 10 million barrels a day, Trump initially said.
As global demand slumped because of the coronavirus pandemic shuttering many economies, oil markets plunged last month. To bolster prices, the OPEC and Russia had cut production for more than 3 years.
Following the failure to come to an agreement with Russia to further curb output, Saudi Arabia said its oil production would be boosted to an all-time record. Worldwide oil prices drop to nearly $20 a barrel due to Saudi’s move along with the coronavirus pandemic. So far in 2020, oil prices have lost more than two-thirds of its value.
An output cut of 10 million-15 million bpd would be nearly impossible by OPEC alone. However, Texas regulators have weighed cutting output in the last several days. The White House is pressed by oil companies in Texas to act.
In response to Saudi’s move to flood the world with crude barrels, a bill proposed by two Republican US senators to withdraw US troops from the kingdom.
