Saudi Arabia & The US Could Form The World’s Newest Oil Cartel


65
9 shares, 65 points

Authored by Irina Slav by means of OilPrice.com,

The United States and Saudi Arabia have been discussing the idea of setting up an oil accord, Bloomberg reports, pointing out Energy Secretary Dan Brouillette. Such an arrangement would efficiently amount to a cartel, which, by meaning, is a group of independent market participants consenting to act together to affect the marketplace in such a way favorable to them.

For now, however, this is just an idea that some officials in the Trump administration assistance. The chance of it becoming anything more is unclear, according to Brouillette.

Via Reuters

” There are lots of, lots of ideas that are drifted around the policy area, that is one of them,” the U.S. Energy Secretary told Bloomberg in an interview. ” I don’t know that it is going to exist in any formal way.”

The U.S. oil industry has actually suffered a heavy blow from the mix of the coronavirus outbreak and the cost war that Saudi Arabia started after Russia refused to comply on much deeper production cuts. Producers are slashing budget, suspending share buybacks, and some have already asked oilfield company for significant discount rates to their services.

West Texas Intermediate, the U.S. benchmark, has shed about 60 percent of its value since the start of the year

According to Reuters’ John Kemp, it has even more to fall unless the economic outlook for the country– and the world– enhances dramatically and rapidly. This outlook is not good news for either the shale market or the supermajors in the U.S., which makes the administration’s relocations worrying Saudi Arabia only logical. Absolutely nothing is certain.

” As part of the public policy procedure, if you will, our interagency partners often get together and talk about a variety of various items, however we’ve made no choice on this,” Brouillette informed Bloomberg. “At some time we will take part in a diplomatic effort down the roadway. No decisions have made on anything of that nature.”

Material from.
ZeroHedge.com RSS feed.


Like it? Share with your friends!

65
9 shares, 65 points

What's Your Reaction?

win win
0
win
Funny Funny
0
Funny
WTF WTF
0
WTF
Dislike Dislike
0
Dislike
Like Like
0
Like
Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format