Putin Is Ready To Cut Oil Supply, But Demand Destruction Still Grows

Putin Is Ready To Cut Oil Supply, But Demand Destruction Still Grows

Speaking in a televised video conference, Putin proposed an arrangement that would result in removing 10 million barrels of crude oil per day from global supply.. While a global deal that would remove 10 millions barrel from daily oil supply would help firm up oil prices, we have to remember that the effort by Russia and Saudi Arabia to flood the market only impacted the supply side of a two-sided equation.. There will still be much work to be done to return the domestic oil and gas industry to some level of health.. I asked Pyle how such an aggressive international strategy would square with the President's long-stated preference for low energy prices. ". All countries compete for energy and labor, and we as a country have always had relatively low energy prices - that's how we compete.. I view the price of oil like a Goldilocks story: Too low is not good for the producer, but it's good for the consumers.. The price of oil needs to be just right in order for both of us to see the benefits.. David Blackmon is an independent energy analyst/consultant based in Mansfield, TX..