Founded by Prince Michael of Liechtenstein
Overshadowed by coronavirus news, interesting developments are taking place in the oil and gas markets. Saudi Arabia and Russia are stuck in a price war that has pushed the price of the Brent benchmark down to about $20 per barrel. There is a huge oil oversupply in the market, but Saudi Arabia cannot achieve a production cut agreement with other major producers.
United States President Donald Trump is stepping in, as the U.S. oil industry is not able to function at this price level. This could sink U.S. production.
A solution could start with Russia reducing its oil output. If Moscow agreed, the Saudis could convince other countries to limit their production as well. The prices would rise, saving the U.S. oil industry. But what can the White House offer the Kremlin for being so accommodating? President Vladimir Putin might request ending the sanctions against his country.
Prince Michael of Liechtenstein
Chairman and Founder