US President Donald trump has said that he is ready to participate in talks between Russia and Saudi Arabia on the sharp fall in oil prices. The US President stated that it is likely that the price of oil will have to be raised.
“The two countries are in talks, and I am ready to join them at the appropriate time if necessary,” the US leader said at a press conference at the White house.
Earlier, trump said that he held “excellent” talks with Russian President Vladimir Putin and Saudi crown Prince Mohammed bin Salman al Saud.
I spoke with President Putin about this, and I also spoke with the crown Prince of Saudi Arabia. They will come together and we will all come together and see what we can do. Because we don’t want to lose an entire industry because of this, ” trump said.
We are talking about, as described in the Kremlin’s press service, “a lengthy telephone conversation” initiated by the American side, during which trump and Russian President Vladimir Putin agreed to hold us-Russian consultations on the line of energy Ministers of the two countries concerning the global fall in oil prices.
Before this conversation, trump said in an interview with Fox that Russia and Saudi Arabia “both went crazy” in their price war.
The American leader admitted that the us benefits from falling oil prices, but it hurts the industry as a whole.
“This is hurting one of our largest industries, the oil industry. What is happening is simply unthinkable. The fact is that we will lose an entire industry because of this, thousands and thousands of jobs, ” Finanz quotes trump as saying.
The US President stated that it is likely that the price of oil will have to be raised.
I never thought I would say this, but perhaps we need to raise the price of oil, because it is necessary, – stated trump.
Recall that oil has fallen in price by half in just a couple of weeks. The price of it was dropped by Saudi Arabia, thus responding to the collapse of the OPEC+deal. The agreement to reduce production has expired. It could not be extended after Russia and Saudi Arabia failed to reach an agreement.
Russia offered to extend the agreement on the same terms and only for the second quarter of this year, and Saudi Arabia wanted to strengthen the reduction by one and a half million barrels per day until the end of 2020.
At the same time, this did not cause a significant decline in production in the United States – American shale oil proved its viability and ability to work for a long time at low prices five years ago.
Trump also supported the Saudis in their intention to increase production in order to displace Russia from the market. Except that he asked Mohamed bin Salman not to drop prices too low. However, Washington did not imagine that Riyadh would lower the price of “black gold” so “deep”.
No one thought that it would collapse so much. It was “wow,” we didn’t think it would come to this, ” Politico quoted a source from among senior American officials as saying.
Recall that trump is preparing a special envoy to Riyadh, who together with the Kingdom will have to work to stabilize the oil market.