US President Donald Trump supported Saudi Arabia’s plans to oust Russia from the oil markets by increasing fuel production, according To politico, citing knowledgeable sources.
According to a former senior administration official, Trump approved of Riyadh’s plans, but at the same time called for preventing oil prices from falling too much to protect US fuel producers.
However, as the interlocutor of Politico noted, the price drop in the two weeks after Trump’s conversation with Salman was so strong that it took the White House by surprise. “No one thought that it (oil) will fall so low,” the source said.
The white house chief Executive expressed his position on March 9 in a telephone conversation with Crown Prince Mohammed bin Salman.
Earlier, The Wall Street Journal reported that officials from the US Department of energy are persuading the Trump administration to create an Alliance with Saudi Arabia to regulate oil prices.
It is assumed that such a decision will avoid a serious collapse in oil prices, and may weaken the partnership between Saudi Arabia and Russia.
Trump himself said last week that Russia and Saudi Arabia are fighting for market share and this has dropped oil prices to their lowest levels in decades.
According to him, the US will intervene in the situation at the “right time,” but in the meantime, it is trying to find “something in between” the benefits of low prices and the protection of its oil industry.
OPEC+ countries in early March failed to reach an agreement on changing the parameters of the agreement on reducing oil production, or on extending it. Riyadh insisted on an additional reduction in production, but this did not suit Moscow, which offered to maintain the current conditions.
As a result, from April 1, participants in the OPEC+ deal will not have any obligations to each other. After that, the Saudis announced that they would increase production, lower prices and offer European buyers large volumes at a discount. This led to a collapse of oil prices on world markets. Since the beginning of the year, prices have more than doubled.