US has to work with Saudi Arabia and Russia to reduce oil production

Reducing US oil production was not originally part of Donald Trump's plans. However, the situation in the world has led the United States for the first time in the newest stories I had to go not only to negotiations with other major oil producing countries, but also to join the deal to reduce oil production.

Julian Lee in Bloomberg writes:

US oil producers have gone down a lot more than you think. (...) This means that the US actually has to work together with Saudi Arabia, Russia and other large oil producers to help balance supply and demand in the oil market - even if it wasn’t exactly what President Donald Trump had originally hoped for.

It is noted that now there are even fewer drilling rigs in the United States than it was in the wake of the 2014–2016 crisis, when the “shales” declared their bankruptcy one by one.

Julian Lee writes in his article that Trump, of course, would like the main volumes of the reduction in the production of “black gold” to fall on other players - Saudi Arabia, Russia - but “the world market makes sure that each country parties to the new OPEC + agreement fully complied with its obligations. ”

Meanwhile, reports are coming from Saudi Arabia that Riyadh intends to implement a food security program. Against the backdrop of the crisis, the kingdom authorities were preoccupied with the need to accumulate sufficient food reserves. To ensure food security, the possibility of deepening cooperation with India is being considered.

Ambassador of India to Saudi Arabia:

India today largely depends on the supply of Saudi oil, and Saudi Arabia considers India as the main element of its food security. The Kingdom has determined that India is the best option for the supply of rice, red meat, sugar, spices, and milk powder. 75 percent of Basmati rice consumed is imported by Saudi Arabia from India.

Against this background, it became known that the company Saudi company SALIC, specializing in investments in agriculture and specifically the livestock sector (it belongs to the state Investment Fund of Saudi Arabia), is already acquiring shares in Indian companies in the agricultural sector. So, invested in a rice company LT. Negotiations are underway to purchase a stake in India's Allana Foods.

Today, Saudi Arabia is India's fourth largest trading partner. The total turnover is $ 34 billion. At the same time, $ 24 billion is India's total imports of Saudi crude oil. And these huge volumes of oil satisfy the volume of the Indian economy so far by only 18 percent.

Comments

[Pvi1206]

the natural ending of the "gold rush" ....

[Malyuta]

But what about today in the Russian Federation?

[The leader of the Redskins]

And you do not feel in your own skin?
And, in general, as I understand it, the article was written "in pursuit" of the morning about how "the Saudis lost out of the plan ...,"

[Civil]

Quote: Malyuta

But what about today in the Russian Federation?

We all won this oil war. Sechin and Shoigu will become twice the heroes of Russia. Why not then.

[Blackmokona]

Despite the fact that fewer drilling rigs are operating than in 2016, more oil is produced than in 2016.
2016-May 8802 thousand barrels per day
2020-May 11900 thousand barrels per day
Technologies
https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WCRFPUS2&f=W

[carstorm 11]

Production has already dropped by 1,1 million barrels per day. Losses and reductions are also likely in the future. According to the latest data from Rystad Energy, oil production in the United States may decline by about 2 million barrels per day by the end of June. that new wells and drilling volumes are declining, "Rystad said in a statement. Expert Philippe Verleger says the decline in production is much larger. According to his latest research, as of May 10, production has dropped by almost 4 million barrels per day from its peak. they physically cannot increase it since there is nowhere to store it stupidly. I'm afraid the states, for the sake of certain goals, will also underestimate these figures, because this will greatly affect the quotes that are no longer gushing. we will see. everything will become more or less clear in a couple of months.

[knn54]

US cuts oil production.
And Texas (40% production) NO.

[Andobor]

Quote: knn54

And Texas (40% production) NO.

In Texas, "traditional" oil, like in Russia, will survive,
the shelf and shales will be bent by them. The Americans were going to squeeze out the markets - they did not.
this is a victory, but everyone suffers losses in the war, the same in oil.

[alone]

Well, a natural thing .. USA, CA and the Russian Federation are leaders in oil production and export ..
Not to work with the Papuans ...

[rocket757]

All as they said. None of the manufacturers are thrilled.
Perhaps there will be a forced truce.

[alone]

Quote: rocket757

All as they said. None of the manufacturers are thrilled.

Of course .. This is only in TV, some have won, others have lost ... The prices from the production cut did not rise to the level that some "experts" expected to feel more comfortable

[rocket757]

So that’s logical. Who could, that zataritsya at the most, the most, but the economy is still standing, minimal consumption.

[Driver d]

This is still western Europe, if Germany were in quarantine, then the star would dream all over Europe quickly.

[antivirus]

Perhaps there will be a forced truce.

- The United States will come out as soon as possible: the freedom of the market will play, everyone else will "keep your agreements"

[rocket757]

Forced agreements or decisions .... yourself, yourself, not from what you want, just NECESSARY.
If someone decides to break them, others will respond with a moment, because they will be forced to do the same.
Swaying back and forth, no one will be for the future.
But, this is so, the obvious, but what and how is likely to happen ??? yes FIG knows?

[Courier]

The Americans were the first to master oil production
The first to master shale

The guys will get out.

[carstorm 11]

drop dead forecast) all you need to get out of the crisis is just to be the first) circus damn it.

[Courier]

Not a forecast.
After the fall in oil prices in 2014, the United States for 5 years became the first in oil production and gas production.

[NKT]

Do not flatter yourself. In China, about 350 BC began oil production by drilling holes in the ground. And they were the first to develop oil shale in the USSR, in Donbas, in 1954, made hydraulic fracturing of coal seams and produced gas. And before Leningrad, before the start of the war, oil and gas were extracted from oil shale.

[Gennady Fomkin]

Quote: Courier

The Americans were the first to master oil production
The first to master shale

The guys will get out.

It’s not funny for yourself? 1. US Manufacturing Business Activity Index (PMI): 36,1.

2. ISM US Manufacturing Employment Index: 27,5.

3. The index of new production orders in the USA from ISM: 27,1.

4. The volume of orders for durable goods in the US excluding the defense industry (m / m): -16,0%.

5. The volume of industrial orders in the United States (m / m): -10,3%.

6. Redbook US Retail Sales (YoY): -9,3%.

7. Redbook US Retail Sales Index (MoM): -12,6%.

8. The number of initial applications for unemployment benefits in the United States: 3.169K.

9. Last month, only 4 orders were made for Class 000 trucks, which is 8% less than last year and 73% less than March!

10. Change in the number of people employed in the non-agricultural sector of the United States: -20.500K.

11. The number of jobs in the US manufacturing industry: -1.330K.

12. In April, US budget revenues were $ 241 yards, and expenditures of $ 979 yards - a "modest" gap of three and a half times and a deficit of $ 737 yards (at the peak of the 2008-2009 crash, the monthly deficit reached "only" $ 220 yards at was more than three times less).

13. ... the total number (of unemployment claims) for eight weeks amounted to 36,47 million, which is significantly worse than the previous worst eight-week period in the last 50-odd years.

... what is most worrying is that over the past eight weeks, far more Americans have applied for unemployment benefits than jobs received during the last decade after the end of the Great Recession ... (22,13 million received over the decade, 36,47 million lost in 8 weeks)

*****

14. The index of production activity of NY Empire State (USA): -48,5%.

15. The basic index of retail sales in the United States (m / m): -17,2%.

16. The volume of retail sales in the United States (m / m): -16,4%.

17. US capacity utilization rate: 64,9%.

18. The volume of production in the manufacturing industry of the USA (m / m): -13,7%.

19. The volume of industrial production in the United States (m / m): -11,2%.

[Courier]

The USA has the most complete and reliable statistics, I am glad that you finally understood this.

Specifically, all these falls are caused by a pandemic, the shutdown of production has no economic basis.
Factories were stopped by a political decision, so all this statistics is rubbish.
Both in 1929 and 2008, the crisis had a financial foundation.
The current fall is not connected with the economy at all.

Now we need to look at trends, and they are such that the United States will return key production back, this is an inevitable process.
A contract has already been signed with Taiwan's largest chip maker TSMC. The company is investing $ 12 billion and will build a chip factory in the United States.
The second largest importer of chips to China, the American Qualcomm.
95% of the chips your beloved China buys abroad.
You can look at the real statistics of the United States and raise the painted Chinese numbers.
Your right.

[Paranoid50]

Quote: Courier

The USA has the most complete and reliable statistics,

Okay, so killing for the owners - one demon will not break off anything,
they now have other mouths full of other worries.

[Vasyan1971]

For the first time in recent history, the United States had to go not only to negotiations with other major oil producing countries, but also to join the deal to reduce oil production.

Oh no no no! Where is this world heading?

[Maks1995]

Yeah, "you have to work." Some installations will be disconnected, prices will rise - they will be turned on.
Someone go broke. Not the first time.

Not for nothing in many articles indicate the number of closed since 12, 14 or from 15-16 years. Those. every year someone leaves, someone comes to USA.

[APASUS]

How quickly Saudi Arabia switched from ambition and indulgence to the Americans, in the real sector. You would always think so rationally and would not create problems for yourself and others.

[Junior Private]

The Americans should not work with the price of oil, but so that it remains in dollars! In parallel, solve problems with China, which is casting aside the role of a cash cow. Potential inflation from freshly printed tons of dollars also needs to be pushed into the corners.

[veritas]

It is noted that now there are even fewer drilling rigs in the United States than it was in the wake of the 2014–2016 crisis, when the “shales” declared their bankruptcy one by one.

Greed drove everyone to the point that an excess of oil had formed and the price had fallen so much that only China was comfortable with such a situation. But in my opinion only Russia, or rather, citizens, suffers from this.

[iouris]

Quote: veritas

But in my opinion only Russia, or rather, citizens, suffers from this.

We have never lived well, and there is nothing to get used to. Remember how Yeltsin prophesied every time: "Tomorrow will be even worse." And I was never wrong! And then: "Chubais is to blame for everything!"

[tsvetkov1274]

We look at Yuri Podolyak at tytube ..
Russia has almost no reduction
Everything explains sensibly there ..

[Oleg Zorin]

The USA, as a state, does not "work" with anyone in this direction. The market is working. The highest-cost enterprises stop their work. The market conditions will change and they (or others instead of them) will open. And again, the United States, as a state, will not take any part in this.

[sen]

The Kingdom has determined that India is the best option for the supply of ..., red meat

In India, a cow is considered a sacred animal.