DAccording to an insider, the American government is not negotiating with Saudi Arabia or Russia about an agreement to cut oil production. The White House wants the two parties to agree on one another. Secretary of Energy Dan Brouillette said in a conference call with managers of the American oil industry, a person who overheard the call said to Reuters.
The White House is encouraging Russia and Saudi Arabia to agree, Brouillette said. He added that US President Donald Trump was optimistic that an agreement could be reached in a few days. Trump invited executives of major American oil companies to the White House on Friday to discuss the impact of the fall in oil prices. After the meeting, Trump said his government would ensure that the US oil industry was in “good shape”.
Oil market prices fell about two-thirds this year as the outbreak of the corona virus depressed fuel demand and major producers Saudi Arabia and Russia waged a price war.
Trump wants to expand access to credit
Brouillette said the insider said in a large-scale conference call with oil industry representatives that Trump had instructed him to work with Treasury Secretary Steven Mnuchin. Together, possibilities are to be sought to immediately remedy the “liquidity shock” of the energy industry. The measures could include easing banking rules to increase oil industry access to credit. The United States has become the world’s largest oil producer in recent years. However, American companies in particular suffer from low oil prices because they have higher production costs than their competitors on the Arabian Peninsula or in Russia.
Before meeting the oil industry managers, Trump said that Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman wanted to stabilize the oil market. The large crude oil producing countries of Opec + – the Opec countries and oil-rich countries like Russia – are already thinking, according to insiders, of a drastic reduction in production to stabilize prices. Talking about throttling by ten million barrels (barrel of 159 liters) per day. The Russian news agency Ria, citing the Azerbaijan Ministry of Energy, reported that Opec + would advise on its funding policy on Monday.