US President Donald Trump said on Tuesday that “crude oil prices have risen again after Saudi Arabia’s decision to reduce oil production”.
“Crude oil prices are rising as Saudi Arabia cuts production… major US energy companies, which provide millions of jobs, are starting to look good again,” Trump tweeted.
Trump also referred to “low US gasoline prices”.
Beginning earlier this month, the largest historical production cut was approved by the OPEC + coalition of 9.7 million barrels per day.
On Monday, Saudi Arabia announced the start of a voluntary reduction of one million barrels per day, and Kuwait by 80 thousand barrels per day, with the aim of reducing the volume of crude supplies to the markets.
The “OPEC +” coalition began since the beginning of this month to implement a reduction in oil production by 9.7 million barrels per day, lasting two months, in an attempt to eliminate the oversupply of oil in the global market.
Bloomberg News indicated that while gasoline prices are still far below 2019 levels, they have been increasing steadily in recent weeks. The average price of gasoline last April 27 was $ 1.77 per gallon.
The American Automobile Association says the price is currently $ 1.85 a gallon.
This comes at a time when the White House is discussing ways to support American energy companies during the crisis, with the collapse of oil prices in light of the collapse of global energy demand due to the repercussions of the pandemic Coronavirus (Covid-19) and the price war between Russia and Saudi Arabia.
Treasury Secretary Stephen Munchen and Energy Dan Brolett are looking at American options to contribute to the continued flow of money to US oil companies.
The Federal Reserve Board (the Central Bank of America) has modified the rules of its programs to support American companies in the face of the consequences of the Coronavirus pandemic to include proposals from the American energy sector, although a few oil production companies can benefit from the support of the Federal Reserve Board.
On the other hand, Trump has said that he wants to add up to 75 million barrels of crude to the United States’ strategic stockpile to take advantage of lower crude prices.
It is also studying the ban on importing crude from Saudi Arabia to support local companies.