Donald Trump to talk with Russian President Putin regarding low oil prices

As oil prices are plunging and impacting United States producers, US President Donald Trump reportedly said that he will ‘soon’ talk to his Russian counterpart Vlimir Putin regarding same. Amid an escalating price war between Russia and Saudi Arabia, global market is experiencing a crude glut and Trump reportedly said that people in oil and gas business are ‘really hurting’. While speaking to an international media outlet, Trump said that he will ‘very soon’ make a phone call to Putin and ‘energy’ will be one of main subjects of talks. 

Meanwhile, Saudi Arabia on March 30 said that it will be increasing oil exports to a record 10.6 million barrels per day from May. An official at Saudi energy ministry said, “ kingdom plans to raise its petroleum exports by 600,000 BPD from May, so total exports will increase to 10.6 million BPD”. recent statement by Saudi Arabia w means that world’s top exporter will d at least 3.6 million BPD of ditional supplies to global market. 

RE: Russia To Ground All International Flights From Midnight

Saudi-Russia oil price war

Earlier this month, a three-year supply pact between Organisation of Petroleum Exporting Countries (OPEC) and its allies led by Russia fell apart as Moscow refused to support Riyh’s plan for deeper production cuts amid coronavirus. Saudi Arabia has repeatedly said that it was t in talks with Russia to stabilise crude prices despite pressure from Washington to call a truce in oil price war. Moscow, on or hand, has declined to support bigger output curbs, arguing that it was too early to estimate impact of virus outbreak. 

RE: Trump Extends US Virus Restrictions; Moscow Goes On Lockdown

Saudi’s move has also put Washington in a difficult position as its battle for market share has led to very low prices. However, US shale industry reportedly has a much higher coast than Saudi or Russian production. Furrmore, Media reports suggest that flood of supply coming from Saudi Arabia and Russia could le to largest surplus of crude in history.

Meanwhile, earlier this month, Trump said that Washington would take vant of low oil prices to fill emergency crude oil reserves. India also took vant of low oil prices in international market as government raised excise duty on fuel by Rs 3 per litre. Central banks all over world took action to prevent ecomic fall out with US Federal Reserves on March 15 slashing its key rates to near zero. 

(With PTI inputs)

RE: Trump Uses Wartime Act But GM Says It’s Alrey Moving Fast

RE: Putin Visits Hospital As Russia Steps Up Virus Response