Saudi Arabia and Russia Reach Deal to End Oil Price War
Saudi Arabia and Russia ended their price war and are poised to deliver the oil production cut President Trump has been demanding in order to raise historically low prices that have damaged the U.S. shale industry.
Saudi-led OPEC and its allies agreed in principle to a deal during an unprecedented emergency remote video meeting Thursday to cut production by 10 million barrels per day beginning in May.
The agreement for that level of cuts would last for two months, with reductions subsequently leveling off through April 2022 depending on progress in containing the coronavirus outbreak. Trump spoke Thursday night with Russian President Vladimir Putin and King Salman of Saudi Arabia to discuss finalizing the oil production cut deal.
After the call, Trump said at his daily press conference that “they are getting close to a deal.” . . .
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 a 18-year low last month. (Read more from “Saudi Arabia and Russia Reach Deal to End Oil Price War” HERE)
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