Latest news – a shift in global oil diplomacy: Russian-American talks on prices launched

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The agreement represents a new shift in global oil diplomacy, since the failure of the Organization of Petroleum Exporting Countries “OPEC” and Russia, earlier this month, to agree to cut production sparked a price war between Russia and Saudi Arabia, the actual leader of “OPEC”.

The effects of the Corona pandemic has also contributed to a historical decline in crude prices, which threatens bankruptcy with the highest-cost oil companies in the United States and around the world. “Views were exchanged on the current state of the global oil markets. It was agreed to hold Russian-American consultations on this through energy ministers,” the Kremlin said in a briefing on communication.

For his part, White House spokesman, Jad Dir, confirmed that the two presidents agreed on the importance of stabilizing global energy markets, adding that they also agreed that they would work through the G20 countries to fight the Corona virus and restore life to the global economy.

US Department of Energy spokeswoman Shailene Haynes said that Energy Secretary Dan Browell will speak with his Russian counterpart Alexander Novak about “the ways in which the world’s largest producers can deal with volatility in global oil markets”.

The Kremlin did not say exactly what the two ministers would discuss. But Moscow has previously indicated that it would like more countries to join efforts to balance world oil markets. Shortly before the phone call, Trump said that Saudi Arabia and Russia were “crazy” in the oil price war.

“We do not want a dead industry that has been destroyed,” Trump said, in an interview with “Fox News”. “This is bad for them, bad for everyone. This conflict between Russia and Saudi Arabia depends on how much barrels to pump. Both of them went crazy,” he added.

Stephen Ennis of Axi Corp., a leading provider of market strategies, said Trump’s call may have been “an attempt to get Russia to sit at the negotiating table with Saudi Arabia or even (to think about the issue) easing sanctions on Moscow, as difficult times call for radical solutions.” .

He pointed out that any indication that Moscow and Riyadh will quit their differences “will be positive”, but added that the markets “do not depend entirely on the matter.”

And oil prices witnessed a rise in Asian trading, on Tuesday, a day after its decline to its lowest level in 18 years, while strengthening the decision-makers’ steps to support the global economy affected by the new corona of investor confidence.

And Texas Intermediate rose by 7.3% to record 21.5 dollars a barrel, while Brent International benchmark crude increased by 3.3% to 23.5 dollars a barrel. In New York Monday, prices fell to their lowest levels since 2002, with West Texas Intermediate barrels falling below 20 dollars.

Oil markets fell at a time when the world’s governments imposed complete isolation measures to prevent the spread of the virus, causing low demand for crude. About two-fifths of the world’s population is now isolated in their homes, while the death toll from the “Covid-19” caused by the new Corona virus has risen to more than 37,000, while the epidemic is increasing dangerously in the United States.

In its latest move to gain market share, Riyadh announced on Monday that it will increase its exports by 600,000 barrels per day, to reach a record number of 10.6 million barrels per day, in May.

But prices recorded a strong recovery, Tuesday, with investors exploiting falling prices to buy at low prices, amid a focus on measures revealed by the world’s governments to stimulate the global economy, including a trillion dollar package in the United States.

There have also been warnings that oil prices may fall further as the world’s reservoirs approach their full capacity.

(Reuters, AFP)

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