President Trump said Monday that OPEC has not explicitly asked him to press U.S. oil companies to cut production, but he added that U.S. output is slated to fall due to market forces as demand collapses.
Why it matters: The comments suggest how the U.S. could offer de facto participation in a wider international production-cutting deal, even though top-down mandates are not part of the U.S. market system.
Oil prices have cratered due to reduced demand and a dispute between Russia and Saudi Arabia, threatening one of America's largest industries. Dan digs in with Axios energy reporters Amy Harder and Ben Geman.
The G20 is emerging as a venue for cooperative efforts to try and calm the oil market, and Bloomberg and others report that a potential meeting of G20 energy ministers could be Friday.
Driving the news: U.S. Energy Secretary Dan Brouillette discussed the G20 role during a wider discussion over the weekend with his Saudi counterpart, a DOE spokesperson tells Axios.
The new few days are slated to bring new efforts to achieved a coordinated cut in global oil production, but success is hardly a sure thing.
Why it matters: The coronavirus outbreak is fueling an unprecedented collapse in demand and has cratered prices, so new cutbacks could at least temper — though hardly alleviate — the market's tailspin.
The world is increasing its dependence on renewable energy, but the shift away from fossil fuels has been long and slow due to the limitations of alternative sources — and the coronavirus crisis has only hurt progress.
President Trump is working to help an oil industry imploding as the coronavirus crisis chokes demand, but listen closely and you’ll hear his enduring love for cheap prices.
Why it matters: He’s like most Americans, who worry about energy only when it’s expensive or gone. As president, Trump has been slow and uneven in responding to the sector’s turmoil because of his inclination to cheer rock-bottom prices.
