US plans to create an oil alliance with Saudi Arabia
US, WASHINGTON (ORDO NEWS) — Officials from the US Department of Energy urge the administration of President Donald Trump to create an alliance with Saudi Arabia for the oil price regulation, according to The Wall Street Journal.
It is assumed that such a decision will avoid serious collapses in oil prices, and may also weaken the partnership of Saudi Arabia with Russia. As the newspaper points out, this could lead to the kingdom quitting OPEC.
It is noted that several variants of the oil union are possible, one of which involves the use of national oil reserves.
According to the publication, the plan is being discussed at the ministry, but has not yet been approved by either its leadership or the White House.
Disruption of the OPEC transaction
In early March, the OPEC + countries were unable to agree either to change the parameters of the agreement to reduce oil production, or to extend it. Saudi Arabia insisted on an additional reduction in production, but this did not suit Russia, which proposed to maintain the existing conditions.
As a result, from April 1, participants in the OPEC + transaction will no longer have any obligations. After that, Saudi Arabia announced its intention to increase production, lower prices and offer large volumes of discounts to European customers.
This collapsed oil quotes in world markets. Since the beginning of the year, prices have more than doubled down.
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