No, your reply is not true.
In April 2020, then-President Donald Trump brokered a historic agreement with
OPEC+ (Saudi Arabia and Russia) to slash oil production by 9.7 million barrels per day, reversing a price war that had sent oil prices plunging during the COVID-19 pandemic. While the deal aimed to protect the U.S. oil industry from collapse, the agreement set the stage for production limits that lasted into 2021 and 2022
Key Aspects of the 2020-2021 Deal & Trump’s Involvement
- The Goal: The deal was designed to stabilize oil markets during the COVID-19 pandemic, which saw demand for fuel plummet.
- Trump's Role: Trump played a key intermediary role, engaging in personal negotiations with Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman.
- The Threat: Trump reportedly threatened to remove U.S. military support for Saudi Arabia if the deal did not move forward.
- Production Cuts Structure: The deal involved a 9.7 million barrel per day cut from May-June 2020, easing to 8 million through the end of 2020, and 6 million from January 2021 through April 2022.
- U.S. Participation: While the U.S. did not formally join in the mandated cuts, production fell naturally, which was accepted as part of the agreement, with Trump promising to make up the difference to satisfy producers like Mexico.
Impact on 2021 and Beyond
- Price Recovery: The deal successfully stopped the price collapse, helping to recover the Texas oil economy.
- Long-Term Impact: Critics and analysts suggest the production restrictions and subsequent failure to quickly return to pre-pandemic production levels contributed to rising oil prices later in 2021 and 2022.
Political Context: The intervention was aimed at saving US oil producers from bankruptcy, including major donors, following a massive, abrupt loss of market value.
Why do you lie at every turn struth?
