A Saudi-U.S.-Russia Oil Deal Is Not a Good Idea

The only comfort the deal gives us is that we know it won’t work out the way the participants intended. For that, it’s way too little way too late. If we don’t want to hit the oil wall, we must curtail global oil production by at least 50% until Christmas at least to allow the global glut to dissipate. And I assume that there won’t be cheating. There is a snowball’s chance in hell for that to happen. By arranging such a deal the US only shows that it wants to paper over this instead of taking swift and bold action. Wanna protect your oil industry. Install a BAT, give refineries incentives to retool for lighter crude, incentivize LNG as a fuel for trucks to give your LNG projects a breather. This oversupply will eventually go away – one way or another. And by then you want your own industry to be in shape. Trump could lead the way towards a new international structure – but this takes guts. How is it Mr. President?

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