Trump Confirms Studying the Possibility of Stopping the Purchase of Oil From Saudi Arabia

YemenExtra

“We will study this,” Trump told a news conference on Monday evening when asked if it was possible to stop buying oil from Riyadh.

Trump added, “Yes, we are in a negative situation, but not for a long time. A lot of people got into an uncomfortable situation. This is a financial condition more than it is an oil one. Nevertheless, in a month or two, the price will rise to 25-28 dollars per barrel.

“No one has ever heard of the negative price of oil, but this is for a short period of time,” Trump explained.

The US President stressed that the US government will buy 75 million barrels of oil to store it in the strategic reserve.

The price of a barrel of US oil collapsed during Monday’s trading, by more than 306%, recording the lowest price in its history, as the price of a barrel reached $ 37.63 below zero.

This coincided with the pandemic pressures on the global economy and its threat to erase a decade of demand growth, resulting in the lay off of millions of employees, and wiping out hundreds of billions of dollars of corporate market value.

However, technical factors played a role in the decline in futures for the month of May, which expire on Tuesday. This has prompted traders to sell them quickly. However, June turnkey contracts were not spared from losses and fell by 13% to $ 21.80 a barrel, so far.

Since the beginning of the year, crude prices have fallen by more than 80% or $ 50 a barrel due to the repercussions resulting from the outbreak of the coronavirus and the collapse of the “OPEC +” agreement last month. The producers attempted to treat the matter this month and approved a historical reduction share. Analysts say the agreement came too late, allowing huge volumes of supply to pass to the market.