Donald Truephoto: Alex Brandon / AP
US President, Donald trump added himself to the rescue of the oil market, describing the impact on Russia, Saudi Arabia and Mexico to cut production. This he said during his visit to Texas, according to the White house website.
According to trump, he persuaded Moscow, Riyadh and others to reduce daily production by almost 10 million barrels in the framework of the new deal OPEC+. He also said that he had convinced Mexico that hedges its oil losses, to accede to the agreement. Trump thanked Russia, Saudi Arabia and Mexico’s participation in the transaction, which helped to stabilize the situation on the oil market.
Oil prices collapsed in the first half of 2020 against the background of the coronavirus pandemic and the collapse of the first deal OPEC+. As a result, in April the price of raw materials in the short term took a negative value. From may 1, 2020, entered into force a new agreement on production cuts, in which from may to July, Russia, Saudi Arabia and the other oil powers agreed to withdraw the current 9.7 million barrels per day. From August to December 2020 the terms of the transaction will soften up 8.2 million barrels. Then, until may 2022, the total quota will decrease to 5.8 million barrels.
Mexico, which hedges the oil loss through the purchase of put options in April agreed to cut production only 100 thousand barrels per day instead of 350 thousand, as demanded by OPEC. The rest of the Mexican share of 250 million barrels per day assumed in the USA, not involved in the transaction. In June, when the countries of the cartel and not its member States, for a month extended the quotas to 9.7 million barrels, Mexico has refused to renew the contraction.
Video, photo All from Russia.