Without the agreements of Moscow and Riyadh, the price level would continue to be unprofitable for American oil producers.
The decision of the authorities of Saudi Arabia and the Russian Federation to reduce oil production allowed keeping world oil prices from further collapse and thereby saved the US oil industry from bankruptcy. This was announced on Friday, June 5, by US President Donald Trump at a press conference in Washington.
вЂњIn a short period, we saved this industry. And you know who helped us in this вЂ” Saudi Arabia and Russia,вЂќ he said.
According to Trump, the decision of Mexico to join the agreements on limiting production was also more important for stabilizing world oil prices. вЂњThen Mexico did what it should and I thank the President of Mexico for this,вЂќ he said.
Some time ago, a catastrophe occurred in the US oil industry, Trump emphasized.
As previously reported, since mid-March, US oil production fell by 14.5% or 1.9 million barrels per day. As of May 22, US oil storage facilities are 62% full.