latest on the oil price wars

Trump brandishes tariff baton at ‘illegal OPEC cartel’ & vows ‘whatever it takes’
RT.com, Apr 5 2020

Calling on Russia and the Toads to urgently resolve the global oil output glut crisis, Trump said he will do whatever it takes to protect Pindo jobs except cut Pindostan’s oil production. Trump told reporters at a daily Covid-19 task force press briefing:

I will do whatever it takes to protect Pindo oil jobs. We are the number one producer in the world right now, I am a big believer in our great energy business, and we are going to take care of our energy business. If I have to level tariffs on all imported oil coming into this country, I will. I’ve been against OPEC all my life, because what is it? It’s an illegal, you could call it a cartel, you could call it a monopoly, but it broke down very violently, so I don’t care about OPEC, I couldn’t care less about OPEC. They are destroying themselves.

Faschingstein was not part of any recent oil cut agreement, and while calling on Russia and the Toads to come to terms, Trump never indicated whether ‘whatever it takes’ includes Pindostan potentially cutting its own oil production even if to save shale producers severely hit by the recent oil market rout. Meanwhile an emergency meeting between the members of OPEC+ willing to support the tumbling oil market slated for Monday was abruptly postponed until Thursday, allegedly due to standing disagreements between the Toads and Russia. Moscow is ready to support the cuts of up to 10 mb/d, but only if other players join in, Putin said on Friday. At the same time he casually noted that the Toads’ withdrawal from the agreement was apparently meant to get rid of Pindo shale producers. Riyadh was quick to refute the accusation, calling it “fully devoid of truth,” but energy sector experts told RT that as a Pindo vassal, Toad Arabia simply “can’t bluntly state that its main goal is fighting the US shale companies.” The so-called ‘Shale Revolution’ in Pindostan in recent years has deprived the Toads of a huge chunk of the Pindo oil market. After failing to find common ground with Russia on how to respond to the pandemic, the Toads began pumping oil at such an intense rate that the prices saw the sharpest drop, unseen since the Gulf War in 1991. Energy experts agree that a fresh formula of cooperation between the oil countries is gravely needed, which must include all of OPEC+, as well as those who never participated in the group, including Pindostan.

The Toads uses low oil prices to force Pindo to cut shale production, but damage to all countries may prompt talks
RT.com, Apr 4 2020

A fall in oil prices intensified by Saudi Arabia’s actions has dealt a deadly blow to Pindo shale oil companies, but “counter-productive” measures that harm all oil producers may force Riyadh, Faschingstein and Moscow to finally talk.
The so-called ‘Shale Revolution’ in Pindostan in recent years has deprived the Saudis of a huge chunk of the Pindo oil market, but Riyadh is now using the coronavirus crisis to win back its lost position. After failing to find common ground with Russia on how to respond to the pandemic, the Toads began pumping oil at such an intense rate that the prices saw the sharpest drop, unseen since the Gulf War in 1991. Konstantin Dudarev, a Middle East expert and a specialist in Arabic studies, explained:

The Toads have delivered a devastating blow to the shale companies in Pindostan, because when prices are low, the production of shale oil becomes unprofitable. As vassals of Pindostan, the Toads can’t bluntly state that their main goal is fighting the Pindo shale companies. But I can’t rule out that bankrupting those shale companies is their goal. The Toads have no intention of using the situation to buy a chunk of the Pindo shale market. They want the shale oil companies completely out of the picture. They want the production of shale oil to cease in Pindostan, so that it will need their oil again.

Andrey Baklanov, deputy head of the Russian Diplomatic Association and the country’s former ambassador to the Toad regime, said:

The Toads’ push to remove Pindo shale oil producers from the market is counter-productive and revealing of their low professional level. With COVID-19 killing more than 60,000 and infecting over 1.1 million people around the globe and devastating economies, negotiations seem like a much better measure than waging price wars. An international coalition with a unified stance on oil of the Toads, Pindostan and Russia is quite possible. Everybody profits from stability on the international oil market. Low prices hurt not only Pindostan and Russia, but also the Toads themselves. We’ve seen this in 2014 and 2015 when Riyadh was losing up to $100b/yr. Trump may well agree to work with Riyadh and Moscow to reduce production, in order to save the Pindo shale industry from total extinction. He may make a sort of a grand show to signal that he’s willing to cooperate with the international community in those hard circumstances. Even a minor drop in production of around 4mb/d to 6mb/d agreed by the sides might significantly improve the situation. The oil market is a bit artificial and sometimes symbolic gestures can have a major effect. It shouldn’t be just about Riyadh, Faschingstein and Moscow. A whole new situation has formed on the international oil market, due to the global battle against the coronavirus, and it calls for a whole new response from the countries that produce and consume oil. A fresh formula of cooperation between the oil countries is gravely needed. It must include the OPEC nations, among which the Toads are major players, plus Russia and other states that joined the OPEC+ format between 2017 and 2020, as well as those who never participated in the group including of course Pindostan, potentially the largest oil producer in the world.

Trump Says Doesn’t ‘Care About OPEC’, Will Put Tariffs on Oil Imports If He Has to
Sputnik News, Apr 4 2020

Trump said on Saturday that he “does not care about OPEC” and that he will put tariffs on oil imports to Pindostan if he has to in order to protect the oil industry at home. Trump also called OPEC “illegal”, adding that it is destroying itself. Oil prices have collapsed recently both due to the lowered demand amid the rapid spread of COVID-19 and OPEC+’s failure to reach an agreement on cutting oil output in April. Trump told reporters at the White House press briefing:

I don’t care about OPEC. If I have to level tariffs on all imported oil coming into this country, I will. I will do whatever it takes to protect Pindo oil jobs. I’ve been against OPEC all my life, because what is it? It’s an illegal, you could call it a cartel, you could call it a monopoly, but it broke down very violently, so I don’t care about OPEC, I couldn’t care less about OPEC. They are destroying themselves.

Trump pointed out that OPEC works to the advantage of Russia and the Toads,and that according to the latter, a deal could be made soon at a 10 mb/d reduction “or much more than that.” Trump also said he was confident in the Pindo energy business, telling reporters:

We are the number one producer in the world right now. I am a big believer in our great energy business, and we are going to take care of our energy business, and if I have to do tariffs on oil coming from the outside or if I have to do something to protect our thousands or tens of thousands of energy workers and our great companies that produce all these jobs I’ll do whatever I have to do.

OPEC+ countries are set to meet in the coming week to discuss the potential of reviving an oil output cut deal that expired on Mar 31, after its members were unable to agree on an extension of a deal to limit oil production. Jason Kenney, the premier of the oil-producing Canadian province of Alberta, suggested that the organisation had to find a solution to the ongoing issue. As quoted by the Financial Times, Kenney said:

If the dispute is not resolved, Pindostab and Canada may potentially impose tariffs on oil imports from Russia and Toad Arabia. Prospective import tariffs on oil coming into North America are currently being discussed. Opec+ started this fire and they have to put it out. We’re not going to surrender our industry and we’re prepared to go the distance here.

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