In the past 2 weeks, major oil producers in the world have been trying
their best to cope with the greatest crisis in several decades, while
oil price has experienced a week‘s heavy losses. Saudi Arabia and Russia
continued their price war, but both sides may still return to the
negotiation table as the current oil price much lower than targets in
the budget has placed much pressure on both countries’ economy.To get
more news about
NOPEC, you can visit
wikifx news official website.
Saudi
announced last week to cut US$133 billion(50 billion Saudi riyals)of
government spending, which accounts for 5% of the total budget in 2020,
after the government decided to reduce projects with least
social-economic influence. Meanwhile, the US may consider intervening if
the current tension between Saudi and Russia persist. The No Oil
Producing and Exporting Cartels Act(NOPEC) can be President Trumps
ultimate weapon to end the oil price war.
The United States may put
pressure on Saudi Arabia to end the price war by passing the NOPEC bill
in an attempt to save the struggling US shale oil industry. Early in
last April, Saudi Arabia had voiced disapproval against the US NOPEC
bill and even considered stop using US dollars to settle oil if the bill
should come into affect, which would make U.S. oil producers the
biggest victims of the oil price war.
The price war between OPEC
and Russia has obviously targeted producers with higher costs, mostly US
producers. The US has become a major player in the global oil market
and a major exporter. The question now is how long Saudi Arabia will
continue increasing its oil production.
The Wall