21/04/2020
Saudi Arabia contributes greatly to the collapse of oil prices by declaring a war in oil prices and dumping the market with a large amount of oil !!
A source in OPEC said that some of the organization’s ministers are considering implementing immediate cuts in oil production instead of waiting until next May. Reuters clarified that the ministers held a meeting over the phone to discuss developments in the oil market and that Saudi Arabia, the UAE and Kuwait would not participate in it.
Saudi Arabia also announced its willingness to take additional measures to stabilize the oil markets in partnership with OPEC Plus members and other producers.
in the United States :
The prices of Texas crude contracts for the coming month of May witnessed fluctuation during trading, as they fell to below zero and then rose to about five dollars per barrel. As for the contracts of Texas for the month of June, they fell to the lowest level in more than two decades, while Brent crude contracts for "June delivery" fell to the lowest level in a year 2001 and it fell to less than twenty dollars, and the reasons for the decline in oil prices are the large increase in supply and the collapse of global demand.
In Saudi Arabia:
The share price of Saudi Aramco also decreased by 2% with the continued sharp decline in oil prices, the company's share price fell to 29 Saudi riyals, and Aramco's share has lost about 16% of its value since the beginning of this year, and it is still below the subscription price of 32 Saudi riyals.
Returning to the United States:
US President Donald Trump has vowed not to let his country's oil and gas sector down and said in a tweet on Twitter that he has instructed the energy and treasury ministers to prepare a plan to provide funding to secure these very important companies and jobs for a long time to come.
And our correspondent in the United States stated that "it was not clear the details of President Trump's plan to contain this crisis, and our reporter stated that President Trump surprised the US Treasury Ministers and the Energy Secretary with this surprising decision and these tweets on Twitter as well, and according to people close to President Trump, he did not He is consulting with anyone, and the problem now is that the funding for the American administration, the federal government, whether the Congress or the American administration, are all now focusing on financing the deficit that the Corona epidemic produced in terms of closing companies, in terms of Americans ’harm, and a $ 2 trillion package to save Americans and polytheism. Small and medium-sized American companies, and now this decision comes from Trump in a tweet on Twitter pledging not to let down the oil and gas sector and that he sent these orders to the two ministers, also there is information that talks about the possibility of not implementing this decision financially because of what we mentioned about monitoring Most of the state funds to combat the outbreak of corona virus, the manufacture of respirators, and the manufacture of protective materials against the virus.
Also, our correspondent stated that there are many calls from the Republican Party and members of the US Senate representing the republican states that are most affected by the Kingdom of Saudi Arabia flooding the market with oil, causing this damage to American companies, such as the Republican Senator "Kevin Kramar" Kevin Kramar is a senator who represents the state " North Dakota "And this state is known that its economy depends on shale oil production and it is a very costly process, so these losses are hurting Americans a lot and from here comes angry stances towards Saudi Arabia. Senator Kevin Kramar asked President Trump not to empty the tankers Recursion of oil cargo upon its arrival to US ports and President Trump is considering this request.
And we go to Russia a little bit where:
Kremlin spokesman Dmitry Peskov said that Moscow called for not to look at the collapse of US oil futures prices for May, as if it were the end of the world, and Peskov added that the collapse of May futures prices did not push the value of oil prices to the negative level, noting that The matter should not cause panic.
He stressed that Russia will hold contacts within the framework of the OPEC Plus agreement if necessary.
Our vision for the oil crisis:
Saudi Arabia has a significant contribution to the collapse of oil prices by declaring a war in oil prices and flooding the market with a large amount of oil, and that the OPEC agreement will not have a rapid impact on the market in the short or medium term.
Unfortunately, Saudi Arabia declared a price war and because of the price war and dumping the market with large quantities of oil. And we do not believe that the OPEC meeting to reduce production 9 million barrels will have a rapid impact, because now the oil-consuming countries store large quantities at an inexpensive price and Even if prices rise, the oil-consuming countries will not buy, as countries will consume the oil that was stored.
These oil stocks will be the reason for the oil market imbalance in the coming days.
