Mike Whitney – Russia Insider April 1, 2020
Donald Trump called Russian president Vladimir Putin on Monday to discuss plunging oil prices that are wreaking havoc on America’s shale oil industry. The two leaders talked briefly about the coronavirus pandemic but quickly switched to Trump’s real concern which is oil production.
For the last month, Saudi Arabia has been flooding the market with crude oil to force Russia to agree to deep production cuts. To his credit, Putin has stubbornly resisted Saudi coercion and maintained current output levels. As a result, prices have plummeted to an 18-year low of $20.09 per barrel which is well below the break-even rate that American frackers need to survive. In less than a month, the capital-intensive US shale oil industry has gone into a steep nosedive that has set off alarms on Wall Street where analysts expect that a wave of defaults will deliver a knockout blow to the big investment banks. That’s why Trump decided to call Putin. He wants to see if he can persuade the Russian president into slashing production.
It’s worth noting, that Putin remained stoically silent when the Trump administration imposed economic sanctions on Russia for its alleged activities in Ukraine. Nor did the Russian president complain about Washington’s meddling in Syria or its attempts to block Russia’s pipelines to Germany and Bulgaria. (Nordstream and Southstream) But now that the shoe is on the other foot and US business interests are being hurt, Trump thinks nothing of calling Moscow for help. As one critic said, “It looks like the Trump team can dish it out, but it can’t take it.”
The phone call has gotten almost no coverage in the American media, which is to be expected since there’s no way to spin an incident in which an American president is clearly pleading to “evil” Putin for a favor. The Russian state media, Tass, summarized the phone call in a terse 3-sentence statement that excluded any useful background. Here’s an excerpt:
“The leaders discussed also the current status of the world’s oil market. “An arrangement was made on Russian-US consultations in this regard through energy department heads,” the Kremlin said. “Vladimir Putin and Donald Trump agreed to continue personal contacts.” (Tass)
Notice how the report in Tass forgoes the baseless allegations and recriminations that typically appear in the western media. Given the deluge of “Russian meddling” disinformation that has dominated the headlines for the last 3 years, you’d think the editors at Tass might be more critical of Trump’s gesture, after all, Trump’s phone call strongly suggests that Washington is ready to cave in to its “mortal enemy” provided it gets the production cuts it wants. It seems like Tass might want to offer an opinion about that, especially since the MSM has taken such a hostile approach to all-things-Russian. Apparently, not everyone uses their media to push their own narrow political agenda.
Some readers might recall how Trump scolded Putin in Helsinki in 2018 for pushing oil prices higher ($85 per barrel) which Trump claimed was hurting growth in the US. Not surprisingly, Trump had his facts wrong. The reason prices rose in 2018 was because the Trump administration clapped harsh economic sanctions on both Iran and Venezuela which caused an immediate decline in production followed by a sharp rise in prices. The US also supported the attack on Libya also contributed to the spike in prices. Bottom line: Russia was no more responsible for the high prices in 2018 than it is for the low prices today. In 2018 the problem was US sanctions that choked off supply, while in 2020 the problem is the Saudis. It’s the Saudis that increased production not Russia. That doesn’t mean that Putin can’t help to ease the situation, but it does mean that the two leaders will have to air their differences candidly and find a constructive way to move forward. That means there needs to be a summit which, to this point, has been strenuously opposed by the U.S. foreign policy establishment.
In any event, it’s extremely unlikely that Putin will agree to reduce oil production in exchange for the lifting of economic sanctions. That’s not what he wants at all. What Putin wants from Washington is far more comprehensive. He wants the US to rejoin the community of nations so they can deal collaboratively on critical issues like war, pandemic, nuclear proliferation and global security. He wants a reliable partner that will play by the rules, comply with international law, stop the bloody regime change wars, respect the sovereignty of other nations, and lend a hand with global crises.
That’s what he wants. He wants an ally that will respect the interests of others, cooperate on issues of mutual importance, and work to create a more equitable and prosperous global economy.
If Trump shows he is willing to change, then Putin will undoubtedly make every effort to help out. But if Trump continues with America’s go-it-alone approach, there’s not going to be a deal
Russia Insider tip jar Paypal or Patreon.
Original source: The Unz Review
Who writes this crap? Putin will see this opportunity as his best chance ever to stick the dagger through the heart of the U S. Putin will see this as justifiable payback for U S sanctions imposed on Russia as well as U S attempts to block Nord stream 2 with Europe. Neither the Saudi’s or Russians trust the Americans and if Trump were to be forced out of office, then you can bet Russia will face all options on the table again and would be quickly back to square 1.
well well, Trump going to putin for help
Putin could demand the USA leave the middle east and stop supporting israeli terrorism
and stop interfering in syria.
So after imposing sanctions on Russia, now the US is feeling pressure of its own Trump is asking Putin to impose self-sanctions on Russia? Because to take a further hit to relieve some of America’s hit is exactly what that’s asking for.
I know Putin is a statesman but it wouldn’t hurt to reply, “You’re joking, right?”
Third to last paragraph: this will never happen. Sure, Trump might promise some of these conditions, but history shows that the US deep state always ends up kicking Russia in the teeth. In this respect, the Russias, being decent nonimperialist people, are fools for ever trusting the US. The US economy is built on two things, debt, and military spending and better relations with Russia kinda kills military spending. Putin’s best course of action would be to demand a treaty with all the components from 3rd from bottom paragraph. Of course, Putin won’t get this treaty, so Putin should make an example of puppet Trump. The facts: Wall Street is in deep trouble and the shale debts are enough to sink the US economy for good. Shale has never made any money and never will. The Russians also hold their scientific view that oil and gas are constantly being created and are infinite, assuming we manage the resource.
carl jones – this is when the world is at its most vulnerable to the usa shinnanigans. with both its economy and social cohesion in free fall the usa will divert attention otherwise it will have social unrest that neither police or army will be able to control. hence the usa will create a false flag situation to start the WW3. remember the false flags of bay of Tonkin, twin towers, Libya and Iraq and currently Venezuela and Syria.
Good comments everyone! Putin plays Chess as a Chessmaster. Trump plays checkers. Who would believe this? Sheeple maybe. In this card game Putin has ALL the CARDS on his chest,Trump is left with the decorative Joker cards – worthless! Putin could give Trump info on Democrat collusion in Ukraine from Obama’s color revolutions there and the Maidan coup, Obamas and Bidens dealings in Ukraine, Crowdstrike fakery for Hillary Email scandal from Ukraine not Russia, flight MH17 machinations and Ukraine’s role, then US-Israel CIA/Mossad role in shooting down Ukrainian Airlines flight 752 in Iranian airspace and Eric Snowden to be returned to USA (NOT). What does Trump have?: maybe remove CIA/Mossad backed ISIS/Al CIAda terrorists from Syria, pressure Turkey as NATO’s 2nd biggest member to withdraw for Syria and let Kurds decide their own fate with Syria, have American troops withdraw from Syria to prevent America/Israel from stealing Syrian Oil/Gas resources, Putin is doing these things by himself and does NOT need Trumps’ help! Thus Putin HOLDS ALL the CARDS.
So Amerka will collapse from Invisible Enemy (Coronavirus), Turkey will leave NATO and Germany will lead a reformed EU to align with China/Russia in the Eurasian Landmass LAND power under the NEW SILK ROAD (BRI), SCO, BRICS grouping!
Stormin’ Norman: brilliant last paragraph.
@ Carl Jones:
Now to show that Trump is out-manuoevered by Putin, when Trump and Putin discussed Oil production cuts to raise the Oil price, Putin asked Trump to join in on the production cuts and its a deal. Thus in this move Trump is damned if he does and damned if he does not. If Trump says -yes – America must reduce production. If Trump says -no- Putin and Saudi Arabia will maintain overproduction, because Saudi’s need Money (Yemen war and people revolt) more than Russians. Russia can do this for 10 years according to Business reports. Trump is trapped! Trump’s Shale Oil and Fracking friends will be disappointed and not give him money and support for November 2020. That is if election ever happens!