Last week while the America Governor’s where dealing with health issues in their states?
Donald Trump was busy working the phones to get count tries like Saudia Arabia, Russia and Mexico (And OPEC) to cut oil production so oil; prices could stop dropping , and even climb back up making these countries, and the US, more money on less product…Trump says it will save American energy jobs…
Donald Trump was doing something he liked…
Working a deal among the rich…
Never mind the sick people in America…
Oil-producing nations on Sunday agreed to the largest production cut ever negotiated, in an unprecedented coordinated effort by Russia, Saudi Arabia and the United States to stabilize oil prices and, indirectly, global financial markets.
Saudi Arabia and Russia typically take the lead in setting global production goals. But President Trump, facing a re-election campaign, a plunging economy and American oil companies struggling with collapsing prices, took the unusual step of getting involved after the two countries entered a price war a month ago. Mr. Trump had made an agreement a key priority.
It was unclear, however, whether the cuts would be enough to bolster prices. Before the coronavirus crisis, 100 million barrels of oil each day fueled global commerce, but demand is down about 35 percent. While significant, the cuts agreed to on Sunday still fall far short of what is needed to bring oil production in line with demand.
The plan by OPEC, Russia and other allied producers in a group known as OPEC Plus will slash 9.7 million barrels a day in May and June, or close to 10 percent of the world’s output.
While the planned cut is slightly smaller than a tentative pact reached last Thursday, the deal should bring some relief to struggling economies in the Middle East and Africa and global oil companies, including American firms that directly and indirectly employ 10 million workers. Analysts expect oil prices, which soared above $100 a barrel only six years ago, to remain below $40 for the foreseeable future. The American oil benchmark price was just over $23 a barrel on Sunday night.
“This is at least a temporary relief for the energy industry and for the global economy,” said Per Magnus Nysveen, head of analysis for Rystad Energy, a Norwegian consultancy. “The industry is too big to be let to fail.”
The agreement reached on Sunday was the result of more than a week of telephone conversations involving Mr. Trump; the Saudi crown prince, Mohammed bin Salman; and President Vladimir V. Putin of Russia. Mr. Trump praised the deal, saying on Twitter that it “will save hundreds of thousands of energy jobs in the United States.”….
Well oil prices are now a two sided coin for the US…low prices good for consumers, but low prices bad for US oil prices, and politically speaking oil production is in mostly trump leaning states…covering his base