- Any cut lower than 7 mb/d will have no impact on the market. The decline in demand is forcing this cut. This is #oil that will not be sold anyway
- The 30% increase in oil prices this morning does not mean much for many US shale and Candian producers because of differentials
- The 30% increase in oil prices this morning does not mean much for many US shale and Candian producers because of differentials
- If Saudis cut production to below 10 mb/d, but prices remain low, the blame will be squarely on #COVID19, something senators from oil-producing states missed. What will they say when Saudi Arabia cuts and oil prices remain low?
- President #Trump's call to MBS and Putin asking them to cooperate and cut production is extremely important from a legal point of view. You cannot ask them officially to cut output then charge them for violating antitrust laws! Trump has just notified NOPEC.
- Another implication of the call: "energy independence" & "energy dominance" are hollow concepts. Anyone who understands energy markets knows that US energy security improves with energy interdependence. US energy security improves as energy security of other countries improves
- The question is, if we have to believe President Trump, Americans need to know what did he offer Russia & Saudi Arabia to accept this massive unprecedented cut?
- The Russian leadership insisted that they are fine with current prices and can survive for years, why a u-turn?
- The Russian leadership insisted that they are fine with current prices and can survive for years, why a u-turn?
- Trump played his hand. Saudis and Russians were happy to get the request to cut production for the reasons stated above. I believe unless US production declines in one way or the other, they will not reach a deal.
The call shows how important Saudi #oil is to the world.
The call shows how important Saudi #oil is to the world.
Correction: Trump has Just nullified NOPEC
