The US President Donald trump said at a briefing on 9 April, held telephone talks with Russian President Vladimir Putin and Saudi Arabia’s king Salman bin Abdul-Aziz al Saud. Transcript of the briefing posted on the White house website.
The conversation took place on the evening of 9 April. He touched the market of oil production.
“The conversation was very good. They are closer to a deal. OPEC and many other countries outside of OPEC. Will see what happens,” said trump.
In his opinion, Russia and Saudi Arabia “fought each other” and did not agree to reduce oil production, which in turn has led to oversupply of the commodity in the market.
“To be honest, even not enough space to store it. Our store will soon be completed,” – said the President.
He said if Saudi Arabia and Russia to fight on. “No, I think they got on very well… let’s See what will happen, but it was a very good call. They probably will announce something today or tomorrow. It can be good, and maybe not so good, anyway”, – said the President of the United States.
According to him, the epidemic of the coronavirus brought down the energy by 40%.
The official news Agency Saudi Arabia Saudi Press Agency , the press service of the Kremlin also reported on the talks trump, Putin and Abdul-Aziz al Saud.
“Affirmed their mutual intention to coordinate action to stabilize the situation in the global oil trade and minimize the negative impact of volatility of oil prices on the global economy”, – informed the press service of Putin on the outcome of negotiations.
April 9 mode videoconferencia held a meeting of the members of the Organization of countries – exporters of oil and partners (OPEC+), which reached a preliminary agreement to reduce oil production. According to the plan, in may and June, the daily extraction of raw materials should decrease by 10 million barrels per day. But the agreement was not supported by Mexico, which refused to reduce production by 400 thousand barrels per day. The agreement will enter into force only with the participation of Mexico. Negotiations should continue today.
March 6, OPEC and allies of the cartel (including Russia) were able to agree on the extension of the agreement on the limitation of oil production from April 1, the transaction is terminated. This provoked a record drop in raw material prices. By 9 March the price of Brent crude oil has fallen by 30% – up to $33 per barrel, the biggest daily drop since 1991, when the war began in the Persian Gulf. On 30 March the price of Brent crude fell below $23 a barrel.
On the background of unsuccessful negotiations Saudi Arabia, according to sources Bloomberg, decided to “join the total price war” and increase production from 9 million to 12 million barrels per day.
1 APR prices on the oil market began to rise amid expectationsthat Russia and Saudi Arabia will reduce production volumes. As at 18.25 on April 10 June futures for Brent on London exchange traded at $31,82.