Putin, Trump, King Salman agree to coordinate moves on stabilizing oil markets
Updated 13:23, 10-Apr-2020

Russia, the United States, and Saudi Arabia have agreed to coordinate actions on stabilizing oil markets and minimize the impact of oil price volatility on global economy, Russian president's press office said in a statement on Thursday. 

"Today, Russian President Vladimir Putin had a phone conversation with U.S. President Donald Trump and Saudi Arabia King Salman bin Abdulaziz Al Saud," it read. 

Echoing the statement, Trump said Thursday he had a good conversation with Putin and King Salman and expected the Organization of the Petroleum Exporting Countries (OPEC) and other countries to announce a deal soon.


"We had a big talk as to oil production and OPEC and making it so that our industry does well and the oil industry does better than its doing right now," Trump said, raising the concern that there would be layoffs in the industry all over the world.

"OPEC met today. And I would say they're getting close to a deal. We'll soon find out," Trump said.

OPEC and its allies led by Russia agreed on Thursday to cut their oil output by more than a fifth and said they expected the United States and other producers to join in their effort to prop up prices hammered by the coronavirus crisis.

The cuts by OPEC and its allies, a group known as OPEC+, amount to 10 million barrels per day (bpd) or 10 percent of global supplies, with another five million bpd expected to come from other nations to help deal with the deepest oil crisis in decades.

File photo of a drill pad in the Permian Basin in Loving County, Texas, U.S.. /Reuters

File photo of a drill pad in the Permian Basin in Loving County, Texas, U.S.. /Reuters

Global fuel demand has plunged by around 30 million bpd, or 30 percent of global supplies, as steps to fight the virus have grounded planes, cut vehicle usage and curbed economic activity.

An unprecedented 15 million bpd cut still won't remove enough crude to stop the world's storage facilities quickly filling up. And far from signalling any readiness to offer support, Trump has threatened OPEC if it did not fix the oil market's problem of oversupply.

Trump, who has said U.S. output was already falling due to low prices, warned Riyadh it could face sanctions and tariffs on its oil if it did not cut enough to help the U.S. oil industry, whose higher costs have left it struggling with low prices.

Both OPEC and Russian officials have said the scale of the crisis required involvement of all producers.

"We are expecting other producers outside the OPEC+ club to join the measures, which might happen tomorrow during the Group of 20 (G20)," the head of Russia's wealth fund and one of Moscow's top oil negotiators, Kirill Dmitriev, said.

Thursday's OPEC+ talks will be followed by a call on Friday between energy ministers from G20, hosted by Saudi Arabia. OPEC and Russian sources said they expected other producers to add 5 million bpd to cuts.

(Cover photo by CGTN's Li Jingjie)

(With input from Xinhua, Reuters)