Analysts believe that a possible oil Alliance between the United States and Saudi Arabia can be a dangerous thing. But it is only in the case that the statements of us President Donald trump is not just hot air.
Currently, according to the newspaper The Wall Street Journal, officials from the U.S. Department of energy convincing the administration of President Donald trump to join with Saudi Arabia to control oil prices. It is hoped that this Alliance will allow to avoid serious collapses in oil prices, and can also weaken the partnership between Saudi Arabia and Russia.
It is noted that there are several options for the oil Union, one of which involves the use of national oil reserves. According to the newspaper, the plan being discussed in the Ministry but not yet approved neither his leadership nor the White house.
On radio Sputnik these plans said the head of the Center “international energy policy” Yuri Solozobov. “The plan to establish a new Alliance was discussed, and it is extremely dangerous. He will control most of the oil market, it will be a mega-regulator. Actually turns out the game against all”, – the expert believes.
“I think we are talking about the fact that Saudi oil has replaced Russian in Europe due to lower prices. In the future, against Russia may be imposed oil embargo as was done in Iran. The fact that such variant is discussed, it is quite obvious,” – said Yuri Solozobov.
However, the Alliance is likely – it’s just a fancy trump
At the same time, the analyst SharesPro Vladimir rojankovski expressed the view that there is no danger. And the statements of the us President about intervention in a price war, the expert called populism.
“Trump won’t do anything. He did verbal intervention against the rise in oil prices, saying that will crush everyone, including Saudi Arabia. At the moment oil is the most speculative asset market supply of goods is not more than 15%, the rest is speculation. It’s impossible to find the end. But somehow to force the market to turn – it-style populism trump,” – said rozhankovsky.
“It turned out that the oil consumption of gasoline during the crisis has not decreased, but rather increased, because people started to commute to work by private transport. So I think that now the oil prices do not reflect supply and demand. After some time it will be clear that the world’s oil refineries will require large amounts of oil, it will rebound,” – said the expert.
“I think the recovery will be quite dynamic, and we get in the second half of the year to above $ 40 per barrel for Brent. And trump is unlikely that anything can be done … If Saudi Arabia wants to break up OPEC, it can make trump any agreement. But I see no reasons why the Saudis are now in this difficult situation it is necessary to bury OPEC “, – said rozhankovsky.
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