A deal with Saudi and Russia has been brokered for huge oil cuts, says Trump
On Thursday, the President of the US Donald Trump stated that he had initiated a deal with top oil producers Russia and Saudi Arabia in order to cut output and arrest an oil price rout amidst the ongoing pandemic caused by the catastrophic Coronavirus.
The news sent crude prices up by 45% Reuters reported.President Trump said he contacted Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman, and now looking forward to the two giants in the industry to cut output by 10 million barrels per day (bpd) which is an unexampled number representing 10% of global supply.“Just spoke to my friend MBS (the crown prince) of Saudi Arabia, who spoke with President Putin of Russia and I expect and hope that they will be cutting back approximately 10 Million Barrels, and maybe substantially more which, if it happens, will be great for the oil & gas industry!” Trump tweeted.The Global demand for Oil has dropped by 30 million bpd in the last few week as a consequence of 3 billion people been put under lockdown to minimize the spread of coronavirus.
