Economic

Saudi Arabia intends to lower oil production after Trump pressured MBS

The US President surprised oil markets by announcing a mediation between Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman (MBS) to reduce daily oil production. This announcement led to a significant increase in oil prices, which amounted to more than ten dollars to cross the oil barrier of thirty dollars.

American producers were affected

American mediation between OPEC countries comes for political, not economic, reasons. Despite Trump’s welcome at the start of the crisis, the price of oil fell significantly, as he said it was beneficial to the American consumer. But American oil companies face great risks due to the low price of oil. Some of them began taking steps to declare bankruptcy. This is something that Trump has to mediate to support the market and raise the price again so that the recession does not increase in the United States, especially in areas known to be loyal to the party to which President Trump belongs.

Saudi Arabia intends to lower oil production after Trump pressured MBS

Saudi Statement

Saudi Arabia published a statement consistent with the US President. The statement attempted to reduce the dose of optimism in the oil market. According to the statement, Saudi Arabia indicated its efforts during the past period to reach an agreement in the (OPEC +) group to restore balance in the oil market, as it drew support for that from 22 countries (OPEC +), but it was not possible to reach an agreement for not obtaining On consensus
In this context, the Kingdom of Saudi Arabia issued an invitation to hold an urgent meeting of OPEC + and a group of other countries, with the aim of seeking a fair agreement that would restore the desired balance to the oil markets.

This call comes in the context of the Kingdom’s constant efforts to support the global economy in this exceptional circumstance and in appreciation of the request of the President of the United States of America Donald Trump and the request of friends in the United States

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