Commodity / Crude has fallen more than 50%, to improve the price, now the US has also indicated the reduction of production, it will be decided by Friday morning

·      Donald Trump said - America will reduce oil production only if OPEC insists

·      American companies have already started reducing production due to price reduction

US President Donald Trump has also indicated the involvement of US oil companies in the global oil production reduction plan. But he said that for this OPEC would have to urge the US. But what is the final decision and the price of crude will increase or decrease in the coming time, it will be known only on Thursday or Friday morning. OPEC and other oil producing countries are scheduled to hold a meeting on Thursday 9 April, in which it will be decided whether all countries will reduce oil production.







US oil companies have already started reducing production due to price drop

At a press conference organized by the White House, Trump said that we might cut production. May or may not decrease. But we have to decide. If they ask me, I will decide on it. In a conversation with a reporter, he promised to give information on Thursday. Donald Trump said that US oil companies have already started reducing production in view of the steep fall in prices.







Crude decline due to Coronavirus and Price wise

A sharp decline in the price of oil has been recorded in the past three months due to the reduction of global demand due to coronavirus and the price war between Saudi Arabia and Russia. On December 30, Brent crude was trading at around $ 68 a barrel. It closed at $ 22 on March 31, an 18-year low. However, the expectation of a compromise between OPEC and Russia has increased in the past one week. But it is still down more than 50 percent from the December 30 price. Cheap crude is beneficial for consumer countries like India, but the producing countries are suffering big losses. But Saudi Arabia and Russia have indicated that unless the US and other countries also reduce production, they will not reduce production.








Crude boom in the hope of a compromise on production cuts

On April 9, the meeting of the oil producing countries saw a sharp rise in the price of crude on Tuesday due to the decision to reduce production. Major US oil has gained 3.83 percent to $ 27.08 per barrel in West Texas Intermediate intraday trade. International benchmark Brent crude has jumped 2.81 percent to $ 33.98 during this period. Crude prices fell to an 18-year low last week, due to reduced global demand for crude due to coronavirus and oversupply due to price-wise spillover between Saudi Arabia and Russia. After this, both Saudi Arabia and Russia indicated that they are ready to reduce production, but only when other oil producing countries of the world also reduce production. It was believed that the US would not be interested in reducing production. But the US Energy Minister spoke to Saudi Arabia and Russia on the issue. After this, there was hope that a compromise could be reached on the issue of reducing oil production.