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On March 19th, US President Donald Trump said that he would get involved in oil price wars between Saudi Arabia and Russia “at the appropriate time.”
He further added that low gasoline prices were good for consumers even as they hurt the industry.
“We are trying to find some kind of a medium ground,” Trump told reporters at a White House press conference, Reuters reported.
“It’s very devastating to Russia because when you look at it, their whole economy is based on that and we have the lowest oil prices in decades so it’s very devastating to Russia. I would say it is very bad for Saudi Arabia but they’re in a fight, they’re in a fight on price, they’re in a fight on output. At the appropriate time I’ll get involved,” he said.
Russia’s economy is notably less dependent on oil exports than Saudia Arabia’s. Still Russia’s ruble is struggling.
The low oil prices are also devastating to US crude producers who have higher costs than those in Saudi Arabia and Russia and will likely spur consolidation of the industry.
According to the WSJ, the Trump administration is considering a diplomatic intervention in the Saudi-Russia oil price war to get the Saudis to cut oil production in an effort to stabilize markets.
The US also is weighing possible sanctions against Russia, although the details are not known. The new strategy reportedly follows lobbying from US oil companies asking the US to ramp up its diplomatic intervention in the oil markets.
On March 19th, the US Energy Department announced a solicitation to buy an initial 30 million barrels of oil for the Strategic Petroleum Reserve, part of a wider plan to fill the stockpile. However, the plan requires congressional approval.
After Trump made his statement that a possible intervention may happen, West Texas Intermediate made an epic recovery, with their largest one day climb in history.
The front-month April West Texas Intermediate crude rose $4.85, or 23.8%, to settle at $25.22 a barrel. That was the largest one-day, front-month percentage climb on record based on data going back to March 1983, according to Dow Jones Market Data.
Global benchmark May Brent crude rose $3.59, or 14.4%, to $28.47 a barrel. On March 18th, the contract fell $3.85, or over 13%, to finish at $24.88 a barrel on ICE Futures Europe, for its lowest settlement since May 8, 2003.
“A fair bit of short covering ensued after President Trump suggested he may tackle the oil crisis by brokering a deal between Moscow and Riyadh,” Stephen Innes, chief market strategist at AxiCorp, said in a note.
“Buying oil for the strategic reserve is a very constructive measure to help some U.S. producers avoid collapse amid the international price war,” said Per Magnus Nysveen, head of analysis at Oslo-based energy research firm Rystad Energy.
“Global oil demand is falling at an unprecedented pace…Saudi Arabia and Russia remain at the focal point of the price plunge, but the negative demand shock to the market may define the next several weeks,” said Helima Croft, global head of commodity strategy at RBC Capital Markets.
The Trump administration still, very apparently blames Russia for the oil war between Moscow and Riyadh, despite quite evidently the Kingdom beginning the spat that’s hurting both economies, alongside most other economies on the globe.
“Of course, it’s a low [oil] price, we would like to see it higher,” Kremlin spokesman Dmitry Peskov reportedly said on a conference call on March 17th, though he did not suggest a deal with the OPEC and its allies, led by Russia.
The Russian ruble has been steadily losing value, but recovered part of it at the opening on March 20th, as it was sitting at 81 rubles for $1 at the opening on March 19th.
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Oil-producing nations failed to reach an agreement in early March to further curb oil production levels, and Saudis and Russians have been locked in a price war that has roiled energy and equity markets.
“Saudi Arabia appears determined to continue ongoing efforts to boost exports in a bid to pressure Russia and seize market share from higher cost producers,” said Fraser. “While US shale is expected to see slowdowns on a lagged basis, Canada may see more immediate losses as much of the country’s output faces both higher breakeven costs and lower product value relative to US production.”
This takes place at the time when coronavirus has locked most of Europe and many other countries, and the MSM even found time to blame the Kremlin for the entire hysteria around it.
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Looks to me that Putin has mbs by the balls and trump by the throat. Covid 19 running amuck through out “free-market” Corporate Capitalist States. Stopped in “Communist China”, “Socialist Russia” while the corruption of the Italian freemarket contrasts sharply with that of Iran both of whom have similar human genome and the most agressive form of Covid 19. Yanki shale gas companies either bankrupt or on the verge. A Fracking disastor for Yanki capitalist hopes to undermine NS2, with Germany. Germany also holding covid19 with socialised equal access Health System…UKraine convid19 problems will explode very soon. Unlikely EU will help, so their only choice will be Russia. It really does look like a clean sweep for Putin and Russia
I just love how deluded some of the messages in here are. It’s an enclosed herd mentality that is far removed from the reality. Russia has nobody by the balls except themselves. They seem to be the once suffering most from it so far
Russia has a large diversified and is self-sufficient in food. So what can the fuckwit Americunts do? Fuckall. Russia needs to arm Iran and change the global power balance in a day. Comparing Russia to Saudi illiterate Bedouins is an insult to the insult :) The arsehole MBS has half his family including brothers and uncles locked up as things are going south by the hour.
Another great point! Fuckwits have no idea of what talk about!
You deluded dumb-fuck clown… Ruble depreciation HELPS Russias economy. Her exports earn more rubles, and even in the case of oil, the depreciation partialy compensates for lower barrel price.
Seriously, some of these paid shills are clueless, no wonder they are hoarding toilet paper :) and fighting for crumbs in the supermarkets.
(…some of these paid shills are clueless, no wonder they are hoarding toilet paper… and fighting for crumbs…)
Exactly! Western fags fighting over toilet paper!
https://www.youtube.com/watch?v=Y1nEnOmC6IQ
In California a child was trampled in rush to buy toilet paper, literally complete arseholes. Shameful and disgusting stealing from blind people.
As an exporting nation, having your currency devalued is a good thing.
When the loonie is low, americans flock here in the summer and buy our goods year round. Especially lumber, where im from.
The same applies for russia, if i want to buy russian goods, i will get them at an excellent price.
The buying power in russia does not change, so whats your problem troll?
Did russian companies lay off employees like we got laid off in the west?
Russia will be fine as its self sustaining.
Russia’s FOREX reserves are over $600 BILLION so even if the Ruble falls, it can afford imports at cheaper costs and its exports become even cheaper. India, Iran and a host of relatively rich nations including the fuckwit Turkeys, Emiratis and other Arab pimps are lined up to buy Russian weapons. India just signed $2.2 billion contract to buy more MIG-29 SMT and T-90 tanks. I believe Iran and Russia have a secret signed deal of over $20 billion worth of arms purchases over the next decade.
I just love how people come in here, having absolutely no idea, not a single shred of understanding of how things are working ……… and try to tell everybody here they are stupid. Good luck dummy.
They also have no idea that the regulars who post on South Front are not like those who post on the sites of the 6 corporate media rags.
It is hard to get good trolls on minimum wage these days :) just ask harbara retards
https://uploads.disquscdn.com/images/287d732a638912a713c58f0a6aa66138b2e9d88f7972a6deba3a22c02eba9406.png
r u truly this stupid? u learned about economics in your meth infested trailer park?
Are you seriously that dence?
Remind me, but, how much debt does the world’s largest debtor nation, the US carry?
Can they feed, without imports, or GM toxins, come to that, their population?
Can they provide them free health care?
Can they provide free education, including University level, to their people?
The US, with over $22 trillion, and rising, national debt and printers to back up the $US.
Russia, creditor nation, with minimal debt and healthy currency and gold reserves.
A nation, which can feed her people on home grown, GM free agricultural products.
A nation that invests in infrastructure projects, that benefit the people.
A nation that provides free health are to the people.
A nation that provides free education, including University level, to the people.
An 11 time zone nation, with a defence budget similar to the UK, whose weapons and systems leave all NATO member states and ‘5 eye’ nations, weapons and systems obsolete.
Forgot to say, US can not even afford street cleaners to clean the streets of human faeces, now can they?
It costs Russia a couple of $US, excluding transport costs, to produce a barrel of oil. How much does it cost the US to do the same?
Russia, an export dominant nation, creditor nation.
US an import dominant, debtor nation.
Another great summary laden with facts! Thank you!
Thank you.
LOL…that is why the Ruble is tanking while the Dollar is getting stronger. While Russia’s interest rates and inflation are almost ten times the US. Why nearly half Russia’s Millennials want to get out of their shithole country and move to a better country, the preference especially for the smartest is the US. By at least a 100 to one, Russians move to the US as opposed to Americans moving to Russia. Tell me again of the vast gold reserves you think Russia has which they themselves say is less than a quarter of the gold the US has. Oh, and their great currency reserves which are in large part US Dollars. Hardly a Chinese Yuen to be found. An economy so great it is little more than half that of just one US state and smaller than a couple of other US states. But it is a wee bit greater than that other had-been Empire, Spain. Oh, with almost 90% of its population that would qualify for Food Stamps in the US. Yes, Putz Putin the Poisoner’s RF that will soon be heading down the oily slide to keep its past Glorious Empires, Soviet and Czarist, company in the dustbin of history.
The ruble is tanking because of market manipulation by the zionist dominated banking and stock market cartel that includes the US agency the ESF (exchange stabilization fund). Russia has no input in this process. Anyone who has bothered to look into how the money markets work would know and understand this. This obviously is not the case with you.
You have been flogged again in your own wake zombie,as long as the fellas keep rolling them barrels out,as you see it is you and your soros desperatos calling for sanctions yet again,well you and your kind are responsable if anything being so mentaly defficient!
Well-said!
These trolls are mentally deficient and drunk Americunti propaganda and fake news!
Rest assured, Russia will be the last man standing after all this! Just watch! You need to get your head out of your ar**se!
Next you’ll be telling us that Trump will make ‘the deal’. If he does, it’ll be his first. Trump brokering a deal….LOL.
Guys, think rationally, Russia is a SUPERPOWER, the largest country on earth with immense resources, Saudi Arabia is family of corrupt pimps with an illiterate Bedouin population of barely 7-8 million max as the rest is slave labor from South Asia. Russia has enough FOREX reserves and high tech exports including first rate weaponry to last 100 years of oil wars. Saudis are pimping for the Jews and on a losing streak. The western economies are crumpling and the demand for oil has almost halved, so the Saudi fuckwits have no alternative. Russia and Iran have huge diversified economies and are allied to China, the world’s manufacturing hub, so what the fuck can the deadbeat Americunts do? FUCKALL!
Trump can send a tweet though, which should fix things for Washington DC.
Excellent analysis! Thanks!
LOL…bankrupt you at will. Which will be on the agenda when the Dems win in November.
Not much of an argument you have there.
That’s if they even get to that point. I’m crossing my fingers the US collapses in on itself like a black hole and sucks that other pathetic parasitic fake state Israel in with it with the Rothschilds following straight behind them too. YEEEEEEEEEAAAAH BOYEEEEE
Russia and China won.
LMFAO…just like you said about the Glorious Russian Soviet Empire, Comrade Igor, just before it took its dive into the dustbin of history.
That dive into the dustbin you talk of was the cause and effect of a Zionist takeover of the economy upon which it purged Russia of its wealth and resources. That was until Putin came along and kicked Zionist azz all the way back to where they came from.
the squeeze is on the friggin frackers. go get ’em you carrot-topped cracker. lmao
Americunts can fuck themselves as Russia has ruined the Saudi morons. Oil is going negative as the Saudi idiots will be forced to give money to the buyers. Saudi FOREX is down to $150 billion as the lost war in Yemen is taking its toll and just in the past week the Saudi cowards have lost over $5 billion worth of weaponry, mostly armor to the Ansarallah. Russia is on a winner and has strong allies in China and Iran, so the Americunts are impotent little mean freaks who are having a hard time coping with their own virus anyway. The whole world order is changing by the minute.
Another concise & factual summary! Keep it up!
Besides the JEW arsehole “Free Man” the rest of you understand the reality. Thanks.
KILL THE KIKE PLAGUE!
And Russia is starting to face the Coronavirus it created and released in Wuhan through that Chinese military bio-weapons lab there. Likely not on pursue but by a usual Great and Glorious Russian techno fuckup. Russian scientists should hold down on their Vodka binging while at work.
amerikans like trump r idiots—these morons claimed that their sanctions (this is what uncompetitive decaying empires do) would ruin the Russian economy in 2014—it merely became more self sufficient and diversified and continues to grow—unlike most contracting Western European nations…amerikans can’t compete–except in their world leading obesity, stupidity, imperialism…as Santayana wrote, “amerikans r ignorant and unteachable”–perhaps Hunter Thompson had it right–” amerika is a nation of used car salesmen that have no qualms about killing anyone that makes them uncomfortable” of course nobody will purchase their low quality vehicles
(…amerikans can’t compete–except in their world leading obesity, stupidity, imperialism…as Santayana wrote, “amerikans r ignorant and unteachable”–perhaps Hunter Thompson had it right–” amerika is a nation of used car salesmen that have no qualms about killing anyone that makes them uncomfortable” of course nobody will purchase their low quality vehicles…)
Could’t have said it better! Thank you!
Violent and bloody America is a crazy and materialistic hellhole! Even Amnesty is warning international visitors not go there!
https://www.rt.com/usa/466022-amnesty-international-crisis-gun-violence/
Well, then don’t come here, Igor. Stay in Russia and binge yourself into an early grave like most Russians.
Only the INSANE will go to the (U$A), the home of the largest prison population in the world and the most violent hellhole on Earth!
https://www.youtube.com/watch?v=lUt_fIB6A_Y
Almost half of Russian Millennials want to leave your shithole country and move to a better country. Showing a preference for the US. We got many thousands of your smartest folk in you last couple of brain drains. Way more on the way soon. But we are not open for dregs like you. Enough of them on the streets as it is.
Only the uninformed, the insane and a few hollywoodized and deceived fools would consider moving to the US hellhole! Anyone with a rudimentary moral sense wouldn’t do such a thing!
Listen:
Violent and bloody America lectures the world about human rights yet 40 million Americans live in poverty and are on food stamps which is (larger than the whole population of Venezuela)!
15 million American children reside in xtreme poverty, 28 million Americans live without health insurance, with widespread urban decay, yards filled with sewage, rampant levels of crime, violence, suicides, has the largest prison population on earth and hundreds of thousands dying each year from suicides, homicides, opioid epidemic, mass-murder, abuse and police brutality!
Hundreds of mass-murders in America every year. Bloody America is more violent than Iraq, Afghanistan, Yemen and Somalia combined!!! Even Amnesty International is warning any kind of travel to the violent and bloody US. More below:
https://www.rt.com/usa/466022-amnesty-international-crisis-gun-violence/
LOL…poor baby with his sour grapes. As the Ruble tanks, your export revenues sink, your national budget is devastated, your real GDP and family incomes continue down the tubes, your interest rates go from high to way too high along with your inflation rate. Your life expectancy falls into the Sub-Sahara level as your murder rate moves higher to match some of the worst in Africa. While near half of your Millennials say they want to get the hell out of Dodge and move to a different country. Please, tell us once again what a Paradise on Earth your Glorious Mother Russia is, Igor.
Ask this good American, like many others like him, he left the US anti-Christ (hollywooidzed) fag-hole and chose to move to holy Russia! Watch the clip below to see his 4 minute testimony:
https://www.youtube.com/watch?v=zNAyzbxDMxc
President Trump ……….. is clueless.
He is just a puppet for the “deep state”. He has no power at all and remotely controlled by the neocohens!
He is exceptionally greedy to boot.
Exactly, and thinks he leads an “exceptional” country!
LOL…So says you, who lives to kiss Putz Putin the Poisoner’s azz.
As usual. I heard his national security breafings contain small paper cards and cartoons…
Hilarious… It is sanctions upon Russia that has allowed Russia to socially distance itself from the worse effects and serious shit storm that is about to his the U.S. led global economy.
So says you, the dodo, who seems to miss Russia’s existential reliance on oil and gas, which is now being decimated by their self-destructive price war, cratering demand and soon to hit home grown Coronavirus Pandemic. When the US steps in doo doo, your Great and Glorious Mother Russia takes a wild dive down into the latrine.
Jake321 Russia exports $120 billion of oil, (under 10% of Russia’s economy) it is highly questionable if the oil will be valued in that currency unit in the future. Russia is far more capable of looking after itself in a global Depression than the U.S. is.
That sure is not what the smart money thinks. Otherwise, the Ruble wouldn’t be about as low as it ever was and the Dollar gaining strength. Anyway, the Russian Government itself estimates that natural resources, largely oil and gas, and their multipliers represent as much as 60% of Russia’s real GDP. With the drastic fall in oil prices due to the price war and collapsing demand due to the Pandemic, Russia is in truly deep doo doo.
KILL THE KIKED 19 VIRUS!
Biden is bound to start a program of appropriating Jewish and non Jewish gold in America after any win in Nov 2020, to help pay for the U.S. govt security apparatus functioning.
LMFAO…you are a great comedian or are you trying out some lines for April First?
Trumpstein is lying as usual. Oil and gas gives 6% of the Russian GDP. Aside from that the U.S. cant sanction shit, they are a joke now.
LOL…but you fail to mention that oil and gas are a third to half its budget revenues and two-thirds to three-quarters its export revenues. And besides that, for Russia to survive economically today it must play in the US’s Global economic sandbox. The US kicks it out and Russia is economically dead. But it might try to save itself by becoming subservient to China and give China free reign in Siberia.
Oh, and the Russian Government itself says your GDP estimate is missing a zero. Natural resources, primarily oil and gas, are 60% and NOT 6% of Glorious Mother Russia’s GDP:
“Russia’s Natural Resources and Environment Ministry estimates that the combined worth of the country’s oil, gas and other resources amounts to 60 percent of its gross domestic product, the RBC news website reported on Thursday.”
Cut your binging and try to focus, Igor or Gregor as the case may be.
Lies as usual. It gives 6% of the Russian GDP. U.S. economy is dead. China is delivering the final blow now… You shouldnt have attack them with bioweapons. Russia and China is finishing off the U.S. Empire ;) Bye bye Shlomo ?? And dont forget to insert your XXL Tampax. Payback is here…
LMFAO…just a couple of weeks to the beginning of the end of your Purz’s RF, Igor. Hoard your Vodka ration while you still can. You will need it to drown your tribulations.
You keep spelling the U.S. wrong.. Your country is shutting down while Russia and China are going strong. Good luck. You will need it. Bye.
LOL…and if you missed it, dodo, China did shut down and Russia is just two weeks behind the US. You better hope you are more like us and not like Italy. Better stock up on your Vodka ration while you still can, Igor.
China is up and running again. Sorry to dissapoint you.. Dont worry about Russia. Worry about the U.S. Medical martial law and full lockdown is in progress. I will miss our lil conversations once they cut your net off. Good luck.
LOL…if you missed it, dodo, China is starting to be up and running BECAUSE they used draconian measures that the US is starting to use. I hope your butt buddies in the Kremlin are as stupid and suicidal as you and just let the Pandemic run wild there. Way less of you Putz Putin the Poisoner Trolls to have to deal with afterwards.
Sorry Maties but we had all best prepare for a vastly reduced personal income and lifestyles, under more controlling governments. Understandably most westerners will gladly accept such new conditions, comfort and stability being more important than personal initiative and responsability, each playing a part in a niche of the system they had not one f’n bit in forming. For the most part Russia landscape is still stuck in pre 1950, as to production of consumer goods their quality and materials used suck, compared to same goods imported from China, and eve. it’s mineral export quality, such as aluminum, iron, steel and copper ignots need more refining. And yes the corruption of Soviet Union times are still prevalent, and that in itself is one reason worker health and safety are lax and so damn much of its landscape and waters polluted to toxic levels. Small buisness with its much needed savings and loan banking system for credit and financing is almost non existent, as Russian Banks are geared to huge government and oligarch projects. Is their medical system modern, yes butt access is almost all concentrated within its more populated eastern sections and even in that area a cess by rural people is limited. Educators other than those at major State Run facilities are grossly underpaid and everyone military and bureaucrats just seen their retirement benefits slashed. As mentioned the education systems, there are actually 4 or 5, each geared for different portions of societal needs, and sorry only those who score high recieve the highest education accessPutin puts his pants on just like any man, a man who clawed his way up through a brutal political system where only the smartest most cunning reach upper levels of power. How would you like the state determining that your child of 10 years is only fit for most basic occupations, by 14 determine who will and will not advance in preparation for upper level management or government employ, he or she only low level military ranks, ? How about freedom as an adult to decide you want to change occupations and being told no as those openings are already filled by newly educated in. system. Rose colored glasses does not mean what you see smells like a rose.