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Trump says expects Russia-Saudi oil deal soon, invites U.S. oil chiefs to White House

CommoditiesApr 02, 2020 08:20AM ET
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© Reuters. FILE PHOTO: U.S. President Trump holds meeting with pharmaceutical executives to discuss developing coronavirus vaccine at the White House in Washington

By Jeff Mason and Timothy Gardner

WASHINGTON (Reuters) - U.S. President Donald Trump said he has invited U.S. oil executives to the White House to discuss ways to help the industry "ravaged" by slumping energy demand during the coronavirus outbreak and a price war between Saudi Arabia and Russia.

Trump also said he had talked recently with the leaders of both Russia and Saudi Arabia and believed the two countries would make a deal to end their price war within a "few days" - lowering production and bringing prices back up.

"I'm going to meet with the oil producers on Friday. I'm going to meet with independent oil producers also on Friday or Saturday. Maybe Sunday. We're going to have a lot of meetings on it," Trump told reporters at a media conference.

"Worldwide, the oil industry has been ravaged," he said. "Its very bad for Russia, its very bad for Saudi Arabia. I mean, its very bad for both. I think they’re going to make a deal."

Global oil prices have fallen by roughly two-thirds this year as the coronavirus has slammed global economies at the same time major producers Saudi Arabia and Russia have started to flood the market with oil.

Speaking to Reuters on Thursday, a senior Gulf source familiar with Saudi thinking said the Kingdom supports cooperation between oil producers to stabilize prices but Russia's opposition to a proposal last month to deepen supply cuts has caused market turmoil.

The collapse in prices has threatened the once-booming U.S. drilling industry with bankruptcies and massive layoffs, and Washington has scrambled for ways to protect the sector.

In the coming meetings with oil executives, Trump is expected to discuss a range of options to help the industry, including the possibility of tariffs on oil imports from Saudi Arabia, according to the Wall Street Journal, which was first to report the planned meetings.

Major drillers expected to participate in the initial meeting on Friday include Exxon Mobil Corp (NYSE:XOM), Chevron Corp (NYSE:CVX), Occidental Petroleum Corp (NYSE:OXY), and Continental Resources, according to the Journal.

Occidental said it had no comment, while officials at the other companies did not respond to requests for comment.

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.

The American Petroleum Institute, which represents the U.S. oil and gas industry, said its president Mike Sommers would attend the initial meeting, but added: "We are not seeking any government subsidies or industry-specific intervention to address the recent market downturn at this time."

The API, many of whose members operate globally, has said in the past it opposes trade tariffs because it can complicate projects and business relationships in other countries.

The group on March 20, however, sent a letter to the Trump administration requesting relief from some regulatory requirements to ensure steady supplies during the coronavirus. The administration has since announced it will temporarily ease some environmental enforcement.

Trump this week called Russia and Saudi Arabia's price war "crazy" and spoke with Russian President Vladimir Putin about the issue. Top energy officials from the two countries later spoke and agreed to continue discussions alongside other major global oil producers and consumers, according to the Kremlin.

The Trump administration said it is also planning to send a special envoy to Riyadh to push for lower output.

Saudi Arabia's crude supply rose on Wednesday to a record of more than 12 million barrels per day, two industry sources said, despite a plunge in demand triggered by the coronavirus outbreak and U.S. pressure on the kingdom to stop flooding the market.

Trump says expects Russia-Saudi oil deal soon, invites U.S. oil chiefs to White House
 

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Comments (49)
Dheeraj Saini
Dheeraj Saini Apr 02, 2020 12:22PM ET
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Just tell me, who is Trump's dealer....?????
jemin An
jemin An Apr 02, 2020 11:49AM ET
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Trump saying means Trump lie and cheat people. he is not a president of Kremlin and Saudi. Russia wants revenge concern Trump forced to stop North stream project, and Saudi want hegemony in oil industry. Nothing is accomplished, why they agree to cut oil production. Just Trump want to? They poured billions already, and also low manufacturing cost of Saudi and Russia can price war last longer. They prepared this war. I can't believe market soaring because of Trump's lie.
Way Cheong
Way Cheong Apr 02, 2020 11:11AM ET
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Trump says, Trump says, Trump says,....
vineet kumar
vineet kumar Apr 02, 2020 10:54AM ET
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wht happend...crute up 40 percent
jemin An
jemin An Apr 02, 2020 10:51AM ET
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Trump is not a BOSS of russia, saudi. only a few days, can solve the T of price war? Don't treat them as fool. You are kidding me.
Patron Silver
Patron Silver Apr 02, 2020 10:22AM ET
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GOP currently running a spin campaign to try to blame CV response on the dems because they know they will lose big in Nov.
Kaz Chaudhry
Kaz Chaudhry Apr 02, 2020 9:18AM ET
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The entire reason for these so called news is because US did not expect price dropping below 20$ which is a key number when most shale oil producers in US starts panicking. Let's not place blame on Russia.. they did not instigate saudi agression on production. And, their refusal to back down now is completely understandable. As for trump's claims, they are only limited to claims, there is 0 substance. And it would be refreshing to see if news on here is not so one sided. If US wants us to believe that Saudi's are spearheading this entire production boost by their own accord, then go tell this story to people who have 0 knowledge of realities. Also, this is purely side tracking and putting a nice face on to show public that US is doing the right thing, on the contrary it was US and it's all weather allies and puppet states such as Saudis who are responsible.
Ivan Rush
Ivan Rush Apr 02, 2020 9:18AM ET
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Yes Fake News
ken starman
ken starman Apr 02, 2020 8:59AM ET
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Frankly i can't imagine what they can agree with? US cut more or Russia should cut more?
jemin An
jemin An Apr 02, 2020 8:57AM ET
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Only Biden smiling secretly.
Scutelnicu Lucian
Scutelnicu Lucian Apr 02, 2020 8:47AM ET
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if they don t agree .. what it will be after? how much it will drop or come back to 20 ?
Rushabh Shah
Rushabh Shah Apr 02, 2020 8:39AM ET
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SA and Russia both benefit tremendously from the collapse of US shale. In fact, the reason Russia didnt want to scale back production was due to giving up market to US shale.
Mahajan Nilesh
Mahajan Nilesh Apr 02, 2020 8:35AM ET
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Saudi Arabia not want end price oil war
FOX MAN
Foxman Apr 02, 2020 4:34AM ET
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Get ready to see the light guys......haha
jemin An
jemin An Apr 02, 2020 4:24AM ET
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Hope for ending oil price war? Remember, Russia, Saudi kingdom both are the worst listeners. They started it as political, economical reason, the war is close, only after they got prize that they wanted. But Trump is far behind in election, any reason they deal and helping Trump? I dont think so.
Curt Hjellum
Curt Hjellum Apr 02, 2020 3:37AM ET
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Neither country has any idea what he's talking about.
Space Lord
Space Lord Apr 02, 2020 3:35AM ET
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This man look sad
jemin An
jemin An Apr 02, 2020 3:15AM ET
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He looks so sad, maybe hands up coming election
Adamo Nals
Adamo Nals Apr 02, 2020 2:52AM ET
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It’s just that simple spot on
Kusoll Buayai
Kusoll Buayai Apr 02, 2020 2:22AM ET
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Output Us 13M, Sau 10M+/-, Rus 10M+/- and demand fall -20M .... oversupply still there
jemin An
jemin An Apr 02, 2020 1:35AM ET
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where is chris SMELL loser martin?
Andre Stepanov
Andre Stepanov Apr 02, 2020 1:20AM ET
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Yea okay... the trade deal was “soon” for about 2 years so we will see about that lol
YC Teng
YC Teng Apr 02, 2020 12:45AM ET
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Biggest hit is to US shale industry players, not Saudi or Russia. This will lead to more umemployement amid COVID-19 bleak environment in US.Ultimately, TRUMP is the sole loser, as he will have to bow out of White House and be sued...
Ludovic Raymond
Ludovic Raymond Apr 02, 2020 12:04AM ET
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No doubt, top priority during public health crisis, help your two best friends reach a deal over oil. Impressive, one more time
Johnathan McDrisdale
Johnathan McDrisdale Apr 01, 2020 11:59PM ET
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Don’t be a *******.. Russia will be hit hard by this and they will have to support yheir only lifeline “oil”
Triplicis Mundi Summum
Triplicis Mundi Summum Apr 01, 2020 10:56PM ET
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“A deal is near”, just like “the 15 coronavirus cases will be down to zero in a few days.” Sure, seems like the truth.
Jo Joe
Jo Joe Apr 01, 2020 10:56PM ET
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He's a very reliable person.
 
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