Oil prices jumped on Thursday because of Saudi Arabia and Russia have reached a deal on production cuts at an emergency meeting between the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+.For more than a month now, Russia and Saudi Arabia have been engaged in a price differences, which fluctuates the global oil market. “After Thursday’s teleconference between OPEC+ members, G-20 energy ministers will meet on Friday.President Donald Trump has frequently celebrated and called for low oil prices.” However, in recent weeks, he has begun to acknowledge the what U.S. oil industry companies are facing.
“The U.S. oil sector is now bringing in more than $500 million per day less in revenue than it was in January,” said David Livingston, a senior analyst with Eurasia Group. Among the states hit hardest, he notes, are Texas, North Dakota, New Mexico, and Louisiana.
Before it was took hold, demand for oil was down. Now, as millions forego travel and work from home, the global supply glut has grown.
Normally, you would get a benefit from low oil prices,” Livingston said. there is very little upside. Consumers aren’t making purchases based on the cost of oil. “We are basically getting much of the pain, and very little of the upside.