Trump is looking at possible fees for Saudi crude

0
23


The Wall Street Journal, citing unnamed sources, reported that US President Donald Trump
The meeting with executives of oil companies on Friday, to discuss providing possible assistance to the sector, including the possibility of imposing fees on crude imports from Saudi Arabia.

The newspaper said today, Wednesday, that the meeting will be held in the White House and will be attended by representatives of Exxon Mobil, Chevron and Occidental Petroleum.

Trump said on Tuesday that he would enter into talks with Saudi Arabia and Russia if necessary, to discuss falling oil prices, which at current levels exclude high-cost production, especially US shale production, which has increased strongly in recent years.

American lawmakers are showing toughness, waving legislative action if Riyadh does not voluntarily cut oil production.

Saudi Arabia, the world’s largest oil exporter, recently increased its oil exports to record levels, despite crude prices globally tumbling.

Reuters quoted two sources in the oil sector that Saudi supplies of crude rose – on Wednesday – to a record level exceeding 12 million barrels per day, despite the decline in demand due to the outbreak of the Corona virus and American pressure on the Kingdom to stop dumping the market.

And ended on Tuesday, the deadline for an agreement to reduce global supplies, which removed restrictions on the production of members of the Organization of Petroleum Exporting Countries (OPEC), Russia and other producers.

Aramco said in a statement today, Wednesday, that it set records for loading 15 oil tankers with more than 18.8 million barrels.

Riyadh’s moves come despite oil prices recording the worst historical quarterly performance, after losing about two-thirds of their value in the first quarter of this year, recording the lowest levels since 2002.

In trading today, Brent crude for June delivery fell more than 5%, to reach $ 24.98 a barrel.

And an official source in the Saudi Energy Ministry said – Monday – that the Kingdom intends to increase its oil exports, starting from next May, by about 600 thousand barrels per day, to reach 10.6 million barrels per day.

Saudi Arabia and Russia have been locked in a war on oil prices three weeks ago, after the dissolution of the OPEC Plus coalition to cut production, followed by Riyadh’s announcement to increase production pumping to an average of 13 million barrels per day by next May, compared to 9.8 million barrels per day in February.

LEAVE A REPLY

Please enter your comment!
Please enter your name here