Texas Oil Regulator Meets With OPEC Amid a Historic Crash in Crude Prices
The nosedive in the price of oil accelerated this week. WTI, the U.S. oil price benchmark, plunged another 29%, closing below $20 a barrel. Fueling the ferocious sell-off are dual shockwaves to supply and demand. Not only has consumption started drying up due to the impact of the COVID-19 pandemic, but OPEC and Russia are also flooding the market with oil following the collapse of their market support agreement.
This slump has devastated the U.S. oil industry, which needs higher crude prices to survive. While there's nothing it can do to address the consumption issue, it's working on ways to curb supply. The head of Texas oil regulator spoke with OPEC's Secretary-General today to see if the U.S. could help end the price war between Saudi Arabia and Russia, according to a report from The Wall Street Journal. Production cuts are among the options the U.S. oil industry is considering.
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