Recent OPEC + agreement to reduce oil production drove the US President Donald Trump into a “trap”, The American Conservative writes.
The article emphasizes that the American leader credits the achievement of the deal, citing the fact that he was the one who managed to convince Mexico to make concessions.
Nevertheless, the authors of the article called Trump’s success “illusory”, because he cannot promise a reduction in the US oil production and is not able to make a significant contribution to the scheme for reducing global oil production.
The publication suggests that US oil companies will continue to experience a crisis amid oversupply in the global energy market, and many of them will go bankrupt, which could provoke a crisis in the US, “worse than what happened in the 1930s”.
The authors believe that this situation is driving Trump into an “oil trap”, which will force the American leader to seek help from other countries in return for easing or partially lifting sanctions, including against Russia.
OPEC + agreed on April 12 to reduce oil production by 9.7 million barrels per day in May-June, 7.7 million in the second half of the year and 5.8 million by the end of April 2022. For Russia and Saudi Arabia, the reference base will be 11 million barrels per day. Mexico insisted on separate conditions, it reduces production by only 100 thousand barrels per day in May-June, and the United States compensates for the rest.