Reuters reports that Saudi Arabia said on Tuesday it is ready to take any extra measures with other OPEC+ members and producers to achieve oil market stability, state news agency SPA reported citing cabinet statement. “Kingdom is committed with Russia to implement production cuts over next couple of years,” the cabinet statement said.
In a continuing deflationary spiral oil futures prices plunged below zero for the first time in history. On Monday, the May contract for West Texas Intermediate plunged below zero to a level where traders were willing to pay to get somebody to take crude off their hands. U.S. President Donald Trump said he wanted to add as much as 75 million barrels of oil to the country’s Strategic Petroleum Reserve, taking advantage of record low prices, and that he’ll consider blocking imports of crude from Saudi Arabia.
With global commerce stalled in reaction to the Chinavirus (COVID-19) there is no demand for oil and tankers full of black gold are floating in the oceans. Without a dramatic reopening of the economy and return to normalcy the disruption of the world’s energy market will continue and the downstream ruin of people’s livelihood is the inevitable result.