Saudi Arabia calls for urgent OPEC+ meeting to stabilise oil markets

Tariffs on Oil Imports to Protect US Energy Workers President Trump says “I couldn’t care less about OPEC”

Presidential office spokesperson Dmitry Peskov said President Vladimir Putin offered the assistance during telephone talks with US President Donald Trump on Monday. United States shale companies, many of which need oil prices to remain at $65 per barrel or higher to break even, will be forced to scale back operations, slash jobs and investments in exploration and production, or simply fold up, if the prices remain at $20-$30 a barrel or fall further.

There is a lot of talk about Trump "pressuring" Saudi Arabia and Russian Federation on this, but the only real pressure on both is their own economics and the global COVID-19 disaster, which makes this oil price war and market share game untenable at best. However, it is clear that Russian Federation and Saudi Arabia alone would not be able to make such a production cut.

Currently, the expectations are centered around a production cut of 10 million barrels per day (bpd). Yet the International Energy Agency, which advises major economies, signaled deeper curbs would be needed to stabilize the market.

"We are continuing our conversations with the global community, including with OPEC".

Since appearing in Wuhan, China, last December, the coronavirus has spread to at least 180 countries and regions, according to figures compiled by the US -based Johns Hopkins University.

The meeting of Opec and allies such as Russian Federation has been scheduled for April 6, but details were thin on the exact distribution of production cuts.

So far, in the ground war, there is no sign of any movement toward a truce.

But diplomatically it's a different picture.

OPEC+ delayed a meeting aimed at ending the oil price war, as Riyadh and Moscow trade barbs about who's to blame for the collapse in oil prices. Subsequently, by saying it's ready to cut, the kingdom put the onus on Moscow, forcing the latter to reverse its opposition to cuts to avert any blame for the damage.

The shipment was likely to be unpopular with some critics of Trump who have urged him to keep his distance from Putin and who argue that Moscow uses such aid as a geopolitical and propaganda tool to advance its influence, something the Kremlin denies. And watching, trying to force them into a deal without committing too much himself, is Trump.

"Part of Putin's comments are about saving face and also justifying why the oil price crashed and partly to deter criticism from the U.S. Putin doesn't want to be blamed for any losses in the U.S. energy industry".

"The United States has always had the reputation of being the global responsible first responder in moments of crisis and now you have a situation where an authoritarian state like Russian Federation is providing humanitarian assistance to the most powerful country in the world".

The development comes after US President Donald Trump said he expected Russian Federation and Saudi Arabia to announce supply cuts of up to 15 million barrels. "And the intervention should be at least near 5 million barrels per day to match at least the slump in demand due to halted transports and grounded planes worldwide". Oil analysts say demand may have fallen by as much as 35 million barrels a day, or 35% of total consumption.

"We expect 10 million bpd of oil production be shut in the next quarter".

Lysenko said that anyone without a device that is able to download the tracking app would be lent one by city authorities that they would later return.



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