Russia and Saudi Arabia have overcome all hurdles to cut oil production at a meeting of OPEC, ending a month-long price war. “Worldwide, the oil industry has been ravaged,” he said.

But the completion of the deal fell through when the kingdom refused to soften curbs for Mexico.

https://www.reuters.com/article/us-global-oil-usa-idUSKBN21J6JX Three years on from its first public airing, the Trump administration’s “energy dominance” mantra has aged like a fine wine-cooler. A source familiar with the plan told Reuters that oil refiners and small producers would also be represented and the issue of potential waivers for royalties on existing federal offshore and onshore leases would be discussed.

Russia was also angered by U.S. sanctions stalling its efforts to complete its Nord Stream 2 pipeline, which would take natural gas to Europe. Frackers’ call for a bailout exposes the weakness of this psychological balm. Reporting by Doina Chiacu, Jeff Mason, Timothy Gardner and Valerie Volcovici in Washington and Gary McWilliams in Houston, and Rania el Gamal in Dubai; Editing by Tom Brown, David Gregorio, Lincoln Feast & Simon Cameron-Moore. "The real political fact is that the U.S. is a lot less involved in the Middle East than it used to be, and that Russia has deepened its presence in the region pretty dramatically in recent years, and this is both political and economic.

"These attempts by state actors to manipulate and shock oil markets reinforce the importance of the role of the United States as a reliable energy supplier to partners and allies around the world. Mr. Trump and his representatives weren’t present at Sunday’s meeting. "There is no question this was a huge humiliation for the Russians to have the Nord Stream 2 pipeline construction stopped just short of completion," said Daniel Yergin, vice chairman of IHS Markit.

The U.S. is part of the Big Three oil producers, along with Saudi Arabia and Russia, but also stands apart from them. This year's wobble in oil prices has been hitting U.S. oil companies, which already have been under pressure from a  limited access to capital markets. Write to Benoit Faucon at benoit.faucon@wsj.com, Summer Said at summer.said@wsj.com and Timothy Puko at tim.puko@wsj.com, Like us on Facebook to see similar stories, Hurricane Delta smashes through Cancun, likely to gain Category 3 status before slamming Louisiana coast, Instacart's valuation has more than doubled in 2020 to $17.7 billion following new funding round, U.S., Saudi Arabia, Russia Lead Record Oil Output Deal. Russia, with its own currency stash, floating ruble and somewhat more diversified economy, is better positioned.

The question is are Russia and Saudi joining forces to hurt U.S. shale or are they fighting against each other.". All Rights Reserved. Chinese demand has already dropped by about 20% in the last several months, and with quarantines already in Italy and a slowdown in travel, demand is also falling in Europe and the U.S. Yet its fortunes still flow from the end of a pipeline: Energy accounted for two-thirds of exports in 2018 (when Brent crude oil averaged $70-plus per barrel). Mr. Trump has intervened in recent days on behalf of U.S. producers, calling the Saudi leadership and Mexican President Andrés Manuel López Obrador. Following the OPEC+ meeting, energy ministers from the Group of 20 major economies are set to meet on Friday. He blocked Angola from a technical meeting and then argued with the African producer over small cuts, which almost derailed his first major summit as OPEC’s de facto chief in December. Early signs, however, were mostly positive.

Saudi Arabia has also won favor in Washington with deals for U.S. military equipment, as well as the young prince's vision for a diversified Saudi economy, away from oil. Analysts expect the price war to result in a hit to the U.S. economy and a smaller U.S. oil sector. Investors remain concerned that the cuts might not be enough to support higher prices in the coming weeks as worldwide lockdowns pummel demand for gasoline, diesel and jet fuel. America’s re-emergence as an energy exporter has made the trade-offs about oil prices, producers and consumers more nuanced than a decade ago. Participants were also told the U.S., Canada and Brazil will hold back as much as 3.7 million barrels a day. The cut of 9.7 million barrels per day doesn’t take effect until May 1, and it’s not entirely clear when nations will begin to lift social distancing orders, which have ground domestic and international travel to a halt and slashed demand for gasoline as a result. -
He did not specify if the United States would be involved - something Russia and OPEC producers have insisted on.

Big government won’t always be the friend of shaky frackers.

Get news and analysis on politics, policy, national security and more, delivered right to your inbox. Under the final deal disclosed Sunday, Mexico will cut 100,000 barrels a day of output, some 250,000 barrels fewer than Saudi Arabia initially wanted. One overlooked reason Trump was hellbent on visiting his prized golf course.

Oil prices jumped after Reuters reported that the two countries have agreed to a "deep cut" in crude production. The downturn could damage the U.S. economy, result in a smaller American energy industry, and knock the U.S. from its position as the world's largest oil producer, analysts say. Analysts, however, say the real target, particularly of Russia, is more likely the U.S. shale industry. “Having been involved in the negotiations, to put it mildly, the number that OPEC+ is looking to cut is 20 million barrels a day, not the 10 million that is generally being reported,” Mr. Trump said. He said Russian energy minister Alexander Novak said Friday that all producers would have the right to pump whatever they wanted as of April 1. But even so, that has not stopped U.S. oil production from holding at a near record 13.1 million barrels a day last week and U.S. exports reaching a record 4.15 million barrels a day.

Nonetheless, it is not a petro-state — and should be thankful for that rather than seeking to join an ever-more precarious club. TOP STORIES

Amid travel restrictions and work stoppages, oil consumption is expected to fall by as much as 30 million barrels a day this month. Painful as restructuring will be, the U.S. exploration and production industry won’t die altogether.

The Russia–Saudi Arabia oil price war of 2020 is an economic war triggered in March 2020 by Saudi Arabia in response to Russia's refusal to reduce oil production in order to keep prices for oil at moderate level. The weekend agreement between Russia and the Saudi-led OPEC calls for suppliers to cut daily output by about 9.7 million barrels a day, about 10%.

But besides the immediate costs, it also carries a big risk. © 2020 CNBC LLC. Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. A Trump Texas Oil Deal Opens the Door to a Green New Deal, Trump’s Energy Dominance Dream Submits to Reality, The Infected President’s Ill-Advised Trip to Bedminster, Trump or Biden, the U.S. and Europe Will Split, What No One Should Forget About the 2020 Vice-Presidential Debate. Saudi Arabia, Russia and the U.S. agreed to lead a multinational coalition in major oil-production cuts after a drop in demand due to the coronavirus crisis and a month-long Saudi-Russian feud had devastated oil prices. Data is a real-time snapshot *Data is delayed at least 15 minutes. Quiz: Can you name the movie from its famous quote. Schumer, Democrats point to virus outbreak in bid to delay Amy Coney Barrett’s confirmation, ‘Not working’: Minnesota swing voters turned off by Trump’s tough message, Armed and Dangerous: best new concealed carry handguns, A new health care war is brewing as the Supreme Court makeup sets to shift, Surprise: Coronavirus could help reelect Trump, Doctor: “Doing This Every Morning Can Snap Back Sagging Skin (No Creams Needed)”, Twitter says users risk suspension for wishing death to Trump following COVID-19 diagnosis, End of an era?

Hence, beneath the rhetoric, the Saudi-Russian price war is a decidedly rearguard action. Energy analysts say it’s hard to overstate the role Mr. Trump played in securing the landmark deal.

A deal to rescue the oil market has to involve Saudi Arabia and Russia, but would not be complete without the cooperation from the United States, the world’s largest crude producer. The opposition to federal action on climate change, embodied chiefly in the Republican-controlled senate, doesn’t merely shore up oil demand in the world’s biggest market; it restrains low-carbon policy and technology developments that could be adopted by other energy importing countries. Croft, who was in Riyadh on the weekend, said it's clear Saudi Arabia intends to pump aggressively, flooding an already oversupplied market. Blanch said he is unsure what is behind the rift, but the motive will likely become important as markets move into the second half of the year. Click A Division of NBCUniversal. “He was inflexible,” said a delegate. Saudi Arabia immediately responded by offering steep price discounts and announced a production boost, actions that helped trigger the steep price decline. That’s not how friends treat friends,” Sen. Kevin Cramer, a North Dakota Republican, said. Oil prices have lost 40% since early March, when Saudi Arabia and Russia failed to agree on an emergency plan to address an oil market supply glut that continued to build as many of the world’s biggest economies went into lockdown to slow the spread of the coronavirus.



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