US President Donald Trump said that the price and production war waged by Saudi Arabia and Russia is killing the oil industry and damaging the two countries and the world, hinting that the price war will soon end, which has led to high oil prices, at a time when Riyadh has shown willingness to cut production and has called for an OPEC alliance meeting.

Trump indicated that he had spoken to Saudi Crown Prince Muhammad bin Salman, who in turn had spoken to Russian President Vladimir Putin about the oil price situation.

Trump added that he suggested to President Putin and the Saudi crown prince to cut production by 10 to 15 million barrels per day, considering that the two countries reach an agreement that is in the interest of the oil market and the interest of the world, and that conditions are appropriate to reduce production.

And he showed that there is a huge surplus in the oil industry, as the market was previously overly crowded before and after the spread of the Coruna virus, and prices have decreased by 45%.

Price collapse threatens the booming US oil industry (Reuters)

Pledges and denied
The US President also said that he made no concessions on reducing the United States' oil production during talks with Russia and Saudi Arabia to discuss reducing the production of the two countries and ending the price war between them.

But Kremlin spokesman Dmitry Peskov denied that the Russian president had telephoned Saudi Crown Prince Muhammad bin Salman about the energy market conditions.

These statements come after Saudi Arabia implemented its pledge to increase its oil exports at the beginning of this April, and the first wave of additional Saudi crude oil has already been launched to Europe and the United States, which indicates that the price war sparked by Riyadh and Moscow is still ongoing.

After Trump launched a tweet that Saudi Arabia and Russia could cut oil production by as much as 15 million barrels, Brent crude rose to $ 36.29 a barrel, up 46%.

The price of West Texas Intermediate increased by 35% to $ 27.39 a barrel.

However, these gains decreased quickly, with Brent oil reaching $ 29.75 a barrel (an increase of 20.25%) and West Texas Oil to $ 24.98 (an increase of 23%).

In response to these developments, Republican Leader Kevin McCarthy called on the US administration to address what he called the geopolitical manipulation practiced by Saudi Arabia and Russia in the oil market.

McCarthy said in a joint message signed by a number of Republican lawmakers to Secretary of State Mike Pompeo, that US national security interests impose a response to what Saudi Arabia and Russia are doing.

He pointed out that their behavior causes the suffering of citizens all over the world, as millions of workers are laid off from their jobs due to the global economic imbalance.

The signatories of the letter also called on both Saudi Arabia and Russia to realize that the time has come to work together to face the crisis of the Corona pandemic, warning of consequences against those who choose to be a source of instability in global markets.

Decline in global demand and a price war led to a drop in oil prices this week to their lowest levels in 18 years (Reuters)

urgent meeting
For its part, the Saudi Press Agency said that Riyadh has called for an emergency meeting of the OPEC alliance and other oil producing countries outside OPEC, the alliance known as OPEC Plus.

She also mentioned that the invitation comes within the endeavors of Saudi Arabia to support the global economy and in response to the request of the American President.

The Saudi Press Agency said that the invitation comes "within the framework of the Kingdom's continuous efforts to support the global economy in this exceptional circumstance and in appreciation of (Trump) and friends in the United States."

Lower global demand and a price war have pushed oil prices down this week to their lowest levels in 18 years.

Global oil prices have tumbled by nearly two-thirds this year, with global economies affected by the Corona virus, as Saudi Arabia and Russia began flooding the market amid a price war between them.

A collapse in prices threatens the once-thriving US oil industry with bankruptcies and layoffs, prompting Washington to quickly protect the sector.

According to a US official, Trump is playing the mediating role between Saudi Arabia and Russia, as the leaders of the two countries have repeatedly called for help in resolving the crisis.

Trump is to meet US oil company executives on Friday. The same official, speaking on condition of anonymity, said he would consider cuts to domestic production, but would not ask executives to agree to a coordinated supply cut.