Trump: Saudi and Russians Want to Cut Oil Production
Russia and Saudi Arabia want to reduce their daily oil production by approximately 10 million barrels. At least, that is what US President Donald Trump said in a message on Twitter.
He bases himself on a conversation with the Saudi crown prince Mohammed bin Salman.
Oil prices fell in a free-fall last month. This is partly due to the sharp fall in demand as a result of the corona pandemic.
Besides, oil superpower Saudi Arabia sparked a price war over a disagreement with Russia, which was unwilling to cooperate with OPEC oil cartel production restrictions to support prices.
“I just called MBS (Crown Prince) of Saudi Arabia, who spoke to President Putin of Russia,” Trump wrote. “I expect and hope they will cut production by about 10 million barrels a day. When that happens, it’s great for the oil and gas industry.”
The Kremlin contradicts Trump and states that Vladimir Putin and Bin Salman have not yet spoken to each other, Russian state news agency RIA Novosti reports.
Saudi Arabia calls on OPEC countries and cartel allies, which Russia previously belonged to, to meet as soon as possible for a “fair deal”.
Trump claimed in a new tweet that production restrictions might reach the equivalent of 15 million barrels of oil. He did not make clear in his reports whether those production restrictions would apply per day.
Oil prices skyrocketed after the president’s tweet. A barrel of American oil was worth more than 24 percent on Thursday afternoon and the price for Brent oil was 20 percent higher.