Saudi Arabia and Russia ended their price war and are poised to deliver the oil production cut, something that President Trump has been demanding to raise historically low prices that have distressed world markets.
He said this at his Thursday afternoon Press Briefing:
President Trump has been pushing Saudi Arabia and Russia to cut output in the hopes that less crude on the market will raise oil prices, which have fallen by two-thirds since the start of the year and reached an 18-year low last month. Most of that has been caused by the coronavirus, reducing travel and, accordingly, demand for oil and fuels, but Saudi Arabia also pushed prices lower by flooding the market with crude oil after Russia last month unexpectedly broke with a multi-year pact to cut output.
“Look, we already cut,” Trump said during Wednesday night’s press briefing. “You know, we’re, like, very market-oriented.” The Trump administration is participating in a separate remote meeting of G-20 energy ministers on Friday, where additional cuts could be discussed. The Energy Information Administration projected this week that U.S. crude oil production would fall to just over 11 million barrels per day in the fourth quarter of 2020, a 1.8 million barrels per day, or almost 15%, reduction compared to the same period last year.
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