The United States is ready to impose heavy oil import duties if the situation with energy prices does not change.
This was stated by US President Donald Trump, CNBC reports .
According to Trump, the introduction of duties depends on whether OPEC and Russia can agree on such a reduction in production, which will change the situation in the oil market.
“Yes, I would do that, I would impose duties. Very significant duties. But I don’t think I will have to do that,” Trump said.
According to Trump, imposing a duty on imported oil is tantamount to signaling that the US does not need it, since the country will have enough of its own production. Consuming their own oil instead of imported oil, the US can save the domestic market and supply its producers with demand.
“This is obviously very bad for them,” Trump said, referring to Saudi Arabia and Russia. In his view, it is more profitable for countries to agree and not risk losing markets.
The OPEC + meeting of the world’s largest oil producers, scheduled for April 6 , was postponed to April 9.
OPEC + countries failed to negotiate and extend the agreement on oil production reduction on March 6.
The current agreement has ceased to have effect since April 1. Thereafter, all restrictions on oil production in OPEC and non-OPEC countries will be lifted.
The stumbling block in the negotiations was Moscow’s position, which refused to deepen restrictions.
Without the participation of Russia, OPEC countries see no sense in continuing to artificially restrict production.
State-owned Saudi Aramco has offered oil buyers the largest discounts in the last 20 years and promises to increase production by more than 2 million barrels per day.
Rosneft’s spokesman, Mikhail Leontiev, said the agreement with the Organization of Petroleum Exporting Countries to reduce oil production did not meet the interests of Russia.
I think Putin’s plan to take on the US will backfire spectacularly. This is what he said Saturday.
“Russia would only cut 1 million barrels a day if the U.S. joins the cuts, Bloomberg cited four industry sources as saying.”
As the article says, the US don’t need to sell oil to stay afloat, Russia can’t survive without exporting it.
We’ve seen countries flooding the markets with cheap products and then the companies go out of business or move to China or Mexico. Both these countries are one trick ponies so this feud will probably continue. The US is also filling up the national reserves at this low price. Moskovia sold for $4 a barrel to Belarus…lmao…
A good article: https://foreignpolicy.com/2020/02/26/zelensky-ukraine-russia-corruption/