The US President Donald trump has forced Saudi Arabia to stop a price war with Russia in the oil market with the help of the ultimatum. This is with reference to four sources reported on 30 April, the Agency Reuters.
On 2 April the us President said the crown Prince Mohammed Ibn Salman that withdraws its troops from the Kingdom if Saudi Arabia will cut oil production and to address the appropriate appeal to OPEC countries, said the source Agency.
Trump gave the Prince 10 days for the announcement of production cuts, promising otherwise not to interfere with the initiative of the Congress to curtail military aid to Riyadh. Muhammad was so overwhelmed with the threat that he ordered his aides to leave the room so he could continue the discussion in private, said the Agency one informed source.
The parties have described the actions of trump as an attempt in whatever was to protect the US oil industry from the historic fall in oil prices in the context of pandemic coronavirus.
Reuters correspondent April 29, asked the head of the White house, did you mention the threat to withdraw its troops at the talks with the crown Prince. Trump replied that he didn’t need to say anything to Mohammad bin Salman. The Prince and the President of Russia Vladimir Putin acted “very wisely” to solve their problem, said the American President.
An agreement to reduce global oil production by 15% OPEC+ announced April 10. Finally the deal was completed on 12 April. The agreement was reached a month after the termination of the previous transaction that triggered a record drop in the price of raw materials. 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, Vinitsa in the failure of the deal Russia has decided “to join total price war” and increase production from 9 million to 12 million barrels per day. In addition, Riyadh has pushed Russian oil Urals on the European market, offering triple the supply of Arab Light grade with big discounts. This led to the fact that, as of 31 March, the price of Urals dropped to the lowest level since 1999 – $13 per barrel. As noted by “Radio Liberty”, the Urals in Europe became cheaper fuel.
1 APR prices on the oil market began to rise amid expectationsthat Russia and Saudi Arabia will reduce production volumes. 2 APR trump announced a preliminary agreement largest oil producers to reduce production by 10-15 million barrels per day. Against this background, the Brent oil prices rose by 16.3% to us $of 34.83 per barrel.
However, the negotiations stalled because of a public squabble between the authorities of Russia and Saudi Arabia about the reasons for the dissolution of the agreement OPEC+. So, Putin expressed the view that Riyadh is out of the transaction to eliminate competitors who produce shale oil. The Minister of foreign Affairs of the Kingdom, Prince Faisal bin Farhan al Saud has called the President’s words “completely devoid of truth”.
On 20 April the price of may futures of WTI for the first time in American history was negative. According to the Agency Reuters, 20 APR quotations fell to minus $40 per barrel.
By 30 April the price of oil recovered to the level preceding the record drop.