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Trump says OPEC has not asked him for a U.S. oil production cut

CommoditiesApr 06, 2020 07:35PM ET
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© Reuters. U.S. President Trump leads daily coronavirus response briefing at the White House in Washington

By Jeff Mason

WASHINGTON (Reuters) - President Donald Trump said on Monday that OPEC had not pressed him to ask U.S. oil producers to reduce their output to support global prices, which have been hard-hit by the economic fallout of the coronavirus pandemic.

Trump said U.S. oil production had already fallen, anyway.

"I think it's happening automatically but nobody's asked me that question yet so we'll see what happens," the president told a press briefing Monday afternoon.

Major oil producers including Saudi Arabia and Russia are likely to agree to cut production at a Thursday meeting but only if the United States joins the effort, three sources involved told Reuters on Monday.

“Without the U.S., no deal,” one of the sources said.

Worldwide oil demand has dropped by roughly 30%, or about 30 million barrels a day as the coronavirus pandemic brings the world economy to a standstill, at the same time that Saudi Arabia and Russia have been flooding markets with extra supply.

That has been a major problem for the economy of the United States, which has grown into the world's largest oil and gas producer, because it has threatened the once-bustling drilling industry with layoffs and bankruptcies.

Several U.S. drilling companies have already scaled back production because of the drop in oil prices, which have lost around two-thirds of their value so far this year.

Last week, in response to the weeks-long market rout, the Organization of the Petroleum Exporting Countries and its allies including Russia, a group known as OPEC+, started talking about cutting production, but they want other non-OPEC nations to participate, particularly the United States.

The renewed discussions among members of OPEC+ began after Trump pressured Riyadh and Moscow to make a deal in a series of phone calls. Trump said last week he had made no concessions and did not agree to a U.S. production cut.

Normally any coordinated decision by U.S. oil producers to reduce output to boost prices would violate antitrust laws.

But if the federal government leads the charge such an effort would arguably be legal, according to Barbara Sicalides, an antitrust expert at Pepper Hamilton LLP.

(Aditional reporting by Diane Bartz; Editing by Richard Valdmanis, Sandra Maler and Sonya Hepinstall)

Trump says OPEC has not asked him for a U.S. oil production cut
 

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Comments (10)
Tee Zee
Tee Zee Apr 07, 2020 7:33AM ET
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So both Russian and Saudi will cut and let US continue raking their market share . What a good dog
tom tor
tom tor Apr 07, 2020 6:29AM ET
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I think there will be some Production Cut, but not too much
Jacky Lee
Jacky Lee Apr 07, 2020 2:24AM ET
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That just explained OPEC is not going to cut.. guys r just buying time by delaying the talk again and again
Shane Thomas
Shane Thomas Apr 07, 2020 2:02AM ET
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Everyone is voting for Trump with exception of lonely keyboard warriors whose own parents have been asking them to leave the basement since Obama.
jemin An
jemin An Apr 07, 2020 12:22AM ET
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What a lier! Mr Trump is blind? Yesterday Saudi paper insisted again US should participate in global oil cut in their TOP NEWS.
crude oil
crudeoiltrader20 Apr 07, 2020 12:22AM ET
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this means there is no cut
Bronson Naab
Bronson Naab Apr 06, 2020 11:37PM ET
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And when has Trump ever lied or been wrong?February 25: “I think that's a problem that’s going to go away… They have studied it. They know very much. In fact, we’re very close to a vaccine.”February 26: “The 15 (cases in the US) within a couple of days is going to be down to close to zero.”February 26: “We're going very substantially down, not up.”
Chris Martin
Chris Martin Apr 06, 2020 11:37PM ET
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You gonna bring that baby up in such a manner? Put someone in jail for thoughts, right ?
Buzzy Jefferson
Buzzy Jefferson Apr 06, 2020 10:01PM ET
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President Trump is correct again. The global oil industry and the model that drives it's necessity is 100% based on American technology. We invented the entire game. All other producers are eating American pie by our grace. They might need to cut production, but America will never. We invented the game. Have some respect.
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Andrew Hook
Andrew Hook Apr 06, 2020 10:01PM ET
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So russia and SA won't cut just to bankrupted the shale oil industry. As a trumpards you don't get the point: conventional oil extraction is cheaper regarding shale oil. So flooding the market with cheaper oil will terminated some actual shale oil producers then Big oil compagnies will buy those compagnies for nothing without the debt : and become profitable. Meanwhile unemployment will hit the economy ( Texas bank will need bailout)
Bryan Lee
Bryan Lee Apr 06, 2020 10:01PM ET
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God smite you and your minions down devil
Chris Martin
Chris Martin Apr 06, 2020 10:01PM ET
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Duunno if you direct threat at the Prez. or the Buzz but seriously, you get that outa a comic book? Not sure anyone of any faith would use such "evil-speak" as that. In either case, be ashamed of copying such to make it seem Biblical...
Buzzy Jefferson
Buzzy Jefferson Apr 06, 2020 10:01PM ET
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Andrew Hook  - Did you finish grade school?
Buzzy Jefferson
Buzzy Jefferson Apr 06, 2020 10:01PM ET
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Diamond Stone  - The modern automobile industry and the commercial viability of producing and refining oil is an American industry. All other countries are emulating the system we invented. I realize this truth might not alleviate your insecurities, but that’s your problem. Our invention.. our pie.
Thomas Koiro
Thomas Koiro Apr 06, 2020 9:52PM ET
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Since when does our government tell private companies when to sell and when not to sell? Especially if it will cost companies more to extract than what they can get for it. It's only a bluff when the other player doesn't know if you can do it or not. Trump's a poor poker player. Too many tells and not much discipline. He might win a big pot once in a while, but he loses focus, takes too many risks and frequently leaves the table, angry & broke.
Diamond Stone
Diamond Stone Apr 06, 2020 9:52PM ET
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honey, oil production be cut or industry ends, what do you think they want? A kid would give a better answer.
Jimmie Meadows
Jimmie Meadows Apr 06, 2020 8:55PM ET
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jo jo, have you ever played poker? why would he tip his hat if they are going to make a counter move to his tariff implication? hes prepared just progressives dont see the game
Andrew Hook
Andrew Hook Apr 06, 2020 8:55PM ET
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whoa, when Trump is playing poker putin playing chess. The diference between bluff and strategy you need Luck vs planning. lol
Chris Martin
Chris Martin Apr 06, 2020 8:55PM ET
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LOL ... Didn't She leave her incorrectly spelled reset button behind? And if We Played poker, I wouldn't take all your money, I'd leave you fare home.
Jo Joe
Jo Joe Apr 06, 2020 7:52PM ET
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Again, again, again.. His attitude is same.. no preparation for discussion.
Chris Martin
Chris Martin Apr 06, 2020 7:52PM ET
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Yes thanx JoJoBeez
 
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