On Thursday, President Trump issued a statement on Twitter saying that after speaking with the Crown Prince of Saudi Arabia, he “expect[s] and hope[s]” they will be cutting back on the rate that both the Saudis and Russians are presently flooding the markets with.
The economic downturn caused by the Chinese coronavirus has been regarded as a major factor in the decline of consumer consumption of petroleum products.
That, combined with the ongoing price war between Saudi Arabia and Russia, has contributed to the drastic decline in the price of crude oil, with petroleum-producing countries flooding the markets and driving the prices of crude oil down even further and into record lows.
Energy industry production in Texas has taken a major hit, with West Texas Intermediate (WTI) having fallen to a low of under $20 per barrel. Recent forecasts are expecting an even worse outlook.
The news that crude production by the Middle Eastern countries could be cut back by as much as 10 to 15 million barrels prompted an uptick in crude prices, with WTI reaching a high of $27.39 up from $20.39—settling towards the end of the day at $25.32.
Texas Railroad Commissioner Ryan Sitton also weighed in with a tweet, saying he had just spoken with Russian Minister of Energy Alexander Novak, and indicated that both agreed there needed to be an “unprecedented level of international cooperation.”
Sitton went on to say they discussed cutting 10 million barrels a day out of the global supply, as President Trump mentioned, and that he was also looking forward to speaking with the Saudi oil minister soon.