Will U.S.-Saudi Negotiations Kill OPEC's Deal?

Saudi Energy Minister, Kalid Al-Fahil, said, "At his heart President-elect Trump will see the benefits and I think the oil industry will also be advising him accordingly that blocking trade in any product is not healthy."

 

Saudi energy minister said blocking trade is not healthy.

Then he led OPEC and non-OPEC countries into deals to block trade.

Now he wants to work with the Trump Administration.

Perhaps U.S.-Saudi trade negotiations will effectively kill the OPEC deal.

After the election of President Trump, Saudi Arabia has warned Donald Trump that the incoming US president will risk the health of his country's economy if he acts on his election promises to block oil imports. Saudi Energy Minister, Kalid Al-Fahil, said, "At his heart President-elect Trump will see the benefits and I think the oil industry will also be advising him accordingly that blocking trade in any product is not healthy."

At the end of November, Saudi Arabia entered into the OPEC agreement to do just that, to restrain production to block trade with the stated goal of reducing global oil inventories. And within a couple more weeks, he sat with the Russian energy minister discussing how OPEC had achieved an agreement with some non-OPEC producers to limit their production, effectively blocking trade.

Also in December, OPEC Secretary General suggested that the United States join with OPEC and non-OPEC countries in future agreements to limit production, calling any agreement that did not include the U.S. "incomplete."

Nonetheless, the Saudi oil minister had nothing but praise for President Trump and two of his cabinet selections, Rex Tillerson, confirmed now to be the Secretary of State, and Governor Perry, Trump's nominee for Energy Secretary. He said, "President Trump has policies which are good for the oil industry, and I think we have to acknowledge it." He also indicated that Saudi Arabia may want to increase its energy investments in the U.S