President Donald Trump has said he will meet USA energy executives this week to discuss plummeting oil values amid coronavirus and a Saudi-Russian price war. Russian Federation has struck a more conciliatory tone, saying it would hold back from a major production increase, but hasn't offered any concrete proposals to end hostilities with its former OPEC+ ally.
Trump earlier indicated that he was concerned about the impact of low oil prices on the American petroleum industry. "If it has to go negative to incentivize that behavior, then it will", the analyst said. Putin has no immediate plans to speak with the Saudi king or crown prince, but such contacts can be easily arranged, he said. Additionally, it didn't help oil prices after Goldman Sachs "estimated that oil demand this week will have fallen by 26 million barrels a day, or 25%, during the crisis", per a Wall Street Journal report. At the same time, fuel consumption is poised to plummet by 15 million to 22 million barrels as coronavirus-related lockdowns halt transit in much of the world.
"The prices of the physical barrels are showing a lot more distress than the paper benchmarks", said Roger Diwan, oil analyst at IHS Markit Ltd.
Riyadh has already loaded three supertankers that are likely to head to the USA, and it's loading a fourth right now, according to oil market intelligence firm Vortexa Inc.
Prices for lighter Saudi grades could fall more than the heavier ones due to weak naphtha and gasoline margins and an ample supply of light crude globally, the respondents said.Читайте также: Eddie Jones signs contract extension with England until 2023
"That's why we, together with the main producers and consumers, should work out such decisions, which would mitigate the situation on the market on the whole", Putin said, according to the readout of the meeting.
In addition, Saudi Arabia said it would grow its output by 30 percent to 12 million barrels per day by end-April in a bid to wrest market share from Russian and USA competitors. "The two countries are discussing it". The leaders agreed that their energy ministers should begin consultations on the oil market, but Peskov wouldn't say when those contacts might begin.
Neither side detailed any steps they are considering to stem the downturn.
-With assistance from Olga Tanas, Dina Khrennikova, Justin Sink and Brian Eckhouse.При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
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