Politics

Trump Says Russia, Saudi Arabia To Cut Back On Oil Production To Support Market

REUTERS/David McNew

Anders Hagstrom White House Correspondent
Font Size:

Russia and Saudia Arabia are expected to decrease their oil production to support its price after it dropped below $20 per barrel this week, President Donald Trump announced Thursday on Twitter.

Oil prices began deflating in early March as the coronavirus gripped global markets. A barrel has costed less than the actual barrel containing it for nearly a month. The deflation came thanks to a trade war between Russia and the Saudi government after Russian President Vladimir Putin’s negotiations with OPEC fell through. (RELATED: Here’s Why Californians Are Getting Reamed At The Gas Pump Despite Rock-Bottom Oil Prices)

Russia had previously been increasing its output in an attempt to squeeze the Saudis out of the market, as quash U.S. natural gas.

The two countries are now expected to cut back production by 10-15 million barrels. (RELATED: Shell Oil Will Change Its Name To ‘She’ll’ For International Women’s Day)

The announcement comes as the Trump administration cracked down on South American narcotics operations Tuesday, saying his administration would not allow drug cartels to capitalize on the coronavirus to bring more illicit drugs into the United States.

Chairman of the Joint Chiefs Gen. Mark Milley announced at the Wednesday press briefing that the U.S. Navy and Coast Guard partnered with domestic lawn enforcement groups to deploy into the eastern Pacific Ocean and the Caribbean Sea to take action against drug traffickers.

Attorney General Bill Barr was also present and said Trump’s action granted new enforcement authorities to stop suspected trafficking vessels.