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U.S., The Kingdom And Russia To Negotiate Potential End Of Oil Price War

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U.S., The Kingdom And Russia To Negotiate Potential End Of Oil Price War

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On March 31st, US President Donald Trump and Russian President Vladimir Putin agreed to dispatch energy officials to discuss oil prices as they continue going down.

Kremlin spokesman Dmitry Peskovsaid Putin and Trump agreed on the call that “current oil prices aren’t in the interests of our countries.”

The White House initially didn’t release a summary but later said both leaders “agreed on the importance of stability in global energy markets.”

Trump said in an interview on “Fox & Friends” Monday that he was making the call, explaining he doesn’t want to see the U.S. energy sector “wiped out” over low oil prices.

“I never thought I’d be saying that maybe we have to have an oil increase, because we do. The price is so low,” he said.

On April 1st, US WTI crude oil sits at $20.52, after falling under $20 on the previous day. Brent crude oil sits at $25.51.

Trump, on March 31st, said that Russia and Saudi Arabia were discussing over ways to end the oil price war that Riyadh began.

He said that he would consider “joining at the appropriate time if need be.” The president added that he had “great” talks with both Putin and Crown Prince Mohammed bin Salman about the situation.

Then, Trump did add that the US would meet with Russia and Saudi Arabia in order to solve the crisis.

“They’re going to get together and we’re all going to get together and we’re going to see what we can do,” he said. “The two countries are discussing it. And I am joining at the appropriate time, if need be.”

If it happens, it would be the first meeting between Saudi Arabia and Russia since the collapse of the OPEC+ coalition in early March.

Saudi Arabia continues flooding the market with its discounted crude oil, pushing prices further down.

The global benchmark crude has already plunged to record lows, posting the worst quarter in history.

“It’s not even feasible what’s going on,” Trump said, adding that the price meltdown was harming the oil industry. “You don’t want to lose an industry — you’re going to lose an industry over it.”

Still, he celebrated the low gasoline prices brought about by the market downturn, calling them “the greatest tax cut we’ve ever given.”

“People are going to be paying 99 cents for a gallon of gasoline,” he said. “It’s incredible in a lot of ways.”

Naturally, it is a relatively positive scenario in the current situation in the US, since the COVID-19 epidemic has led to great financial loss and is a great threat to the market.

However, Trump’s statement mean that Saudi Arabia’s bid to begin an all out price war is not feasible and needs preventive measures.

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