DUBAI/LONDON/MOSCOW/ NEW YORK (Reuters) – OPEC and its allies are dealing with a deal for an unmatched oil production cut equivalent to around 10%of worldwide supply in what they anticipate will be an international effort consisting of the United States, but the White House did not make such a commitment after a Friday conference with oil companies.
FILE PHOTO: An oil pump jack pumps oil in a field near Calgary, Alberta, Canada on July 21,2014 REUTERS/Todd Korol/File Picture
While U.S. President Donald Trump pledged help for the industry at the conference, he made no commitment to take the remarkable action of persuading U.S. business to cut output.
In a subsequent phone conference, U.S. Energy Secretary Dan Brouillette told market executives that the White Home is not negotiating with Saudi Arabia or Russia, but it is encouraging them to come together to reach an arrangement to cut production, a source who listened to the call said.
The oil market has actually crashed, with rates falling to $34 a barrel from $65 at the start of the year, as an outcome of the coronavirus pandemic. Fuel need has visited roughly a third, or 30 million barrels per day, as billions of individuals worldwide limit their movements.
An international offer to reduce production by as much as 10 million to 15 million barrels per day would need participation from nations that do not put in state control over output, consisting of the United States, now the world’s lar