PortandTerminal.com, April 2, 2020
Russia: Oil Producing Countries Not Discussing Any New Deal
WASHINGTON – President Trump on Thursday said he had spoken to Saudi crown prince Mohammed bin Salman (MBS). The President said via Tweet that the Saudi Prince had been in contact with Russian President Putin to discuss oil production cutbacks.
The stock market reacted positively to the news finishing up today with the Dow finishing up +423 points (2.02%). Oil prices shot up 21% on the news.
Finally! Good news we all badly need right now. American oil producers have been rocked by the price war between Russia and Saudi Arabia. Just yesterday the Saudi’s had defied President Trump’s request to bolster prices by cutting production and announced an INCREASE of output.
The only problem with this good news from President Trump is that it may not be true.
According to Kremlin spokesman Dmitry Peskov, President Trump is misinformed. “No. There has been no such conversation” between President Putin and Saudi Crown Prince Mohammed he said.
Russia and Saudi Arabia have not started talks regarding the oil market, Peskov said today. Nor there are plans for such talks at the highest level either for Thursday or Friday, Peskov added.
“No one has started talking about any specific or abstract deals yet,” the Kremlin spokesman Peskov told reporters on Thursday, as carried by Russian news agency TASS.
Trump, who is scheduled to meet with U.S. oil executives on Friday, did not say there was a definitive deal between Saudi and Russia but said he expected and had “hope” for the cut.
Is the market reading too much into the President’s “hopes” or is Russia playing its usual games?
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