For these reasons ... expectations of the failure of the OPEC Plus meeting

A report at the American Price website said that the current optimism of analysts and the media at the end of the ongoing dispute in OPEC Plus on the price of oil and production cuts is not at all justified, because the collapse of demand in the world by manufacturers and consumers may not be matched by the proposed reduction by Russia, America and producers Others.

The report, which was published a few days ago, added that the continued fluctuations in the oil market, the battle between the major producers to obtain market shares, the logistical impossibility to impose American production cuts and the destruction of the ongoing demand caused by the Corona virus are not issues that can be resolved through this meeting.

In a report to Oil Price, writer Cyril Wiedershoven said that after US President Donald Trump's attack on OPEC, Saudi Arabia and Russia made critical statements about the influence and influence of the US president on this issue.

And while Putin and Muhammad bin Salman are reluctant to confront Trump, the real power when it comes to the oil market does not lie with the US president, the writer says.

"Indeed, Trump's tweet - which claims that Mohammed bin Salman and Putin will agree to reduce oil production by more than ten million barrels per day - not only shows his excessive appreciation of his authority over the two countries, but also shows a lack of knowledge of market fundamentals and the collapse of current demand in all around the world".

The writer explained that Trump's tweets and his general approach to this issue indicate that he and his administration are out of reality, even if Saudi Arabia and Russia reduce production by ten million barrels per day, the reaction of oil prices will be minimal and short-term.

Negative optimism
And senior oil market experts are currently warning of a total destruction of demand by about twenty million barrels per day or more, at a time when companies in the downstream sector reduce all production operations with demand collapsing by manufacturers and consumers around the world.

The writer says that the closings of countries in more than half of the world have a significant impact, which is damaging to demand for oil, gas and other types of energy, so the writer considers that reducing production by more than ten million barrels per day is not a real solution and could cause a negative reaction to the markets .

The next "OPEC Plus and Friends" meeting will be very difficult, as there is a real possibility of its failure, as the goals that were set are not entirely clear, according to the author.

Indeed, Saudi Arabia has called for an emergency meeting, not only for OPEC Plus members but for all oil producing countries, and this means that the United States is invited, and is likely to attend.

The author believes that by inviting the United States to attend the meeting, it appears that Saudi Arabia has thwarted Trump's trick, because with Washington attending the meeting, it will implicitly announce that the potential production cut agreement will include America.

The writer stated that when looking at the oil and gas sector in the United States, it can be said that the American oil and gas companies and Washington are not on the same line.

According to the author, the suggestions that Washington is able to control American oil or even force him to cut production are ridiculous and will end in a huge legal battle, and even if only Texas representatives attend, it is unlikely that oil companies will comply with this decision.

In subsequent statements by the US President, Trump said that OPEC did not press him to ask the United States oil producers to reduce their production to support global crude prices, which witnessed a sharp decline due to the Corona virus, at a time when Russia strongly indicated the necessity of America's participation in efforts to stabilize the markets.

Threats
The second major threat posed by the next meeting is that Saudi Arabia is absolutely not convinced that it needs to change its current strategies, according to the author.

Saudi Arabia’s goals - centered on regaining market share - are forcing Russia to sit at the negotiating table with non-OPEC producers, such as oil shale, in order to subdue it to its whims.

In this context, many Saudi officials stated that they are ready to discuss a new agreement, but in the event that the burden of potential production cuts bears all producers, not only Saudi Arabia, Russia and the UAE, as reported by the Oil Price report.

In light of these data, the report considers that Trump's request to Russia and Saudi Arabia to reduce more than 10 million barrels per day is an unrelated request.

The writer pointed out that Russia's position remained unclear to the present moment, while Putin is still behaving as if there is no cause for concern for him.

For Russia, Trump's current stance is seen as an opportunity to get some concessions from the United States soon.

Russia is likely to consider cooperating with the United States if Washington agrees to end Russian sanctions, but that is not as important to Moscow as it is to attach a strong relationship with Riyadh and OPEC in the future, because future opportunities with Saudi Arabia are more attractive to Putin than linking a positive relationship with a president from He may not be re-elected this year.

The writer stated that in order to reach a reduction of ten million barrels per day, OPEC would have to persuade all the oil producing countries to agree to this decision.

At the present time, persuading such a large list of independent states and joining these efforts seems far from reality, and it is unlikely that countries such as Libya, Iran, Iraq, Brazil and Canada will agree at the present time to reduce production, and this is another reason for the possibility of the failure of the next OPEC meeting, according to The writer's report.

It is noteworthy that Kremlin spokesman Dmitry Peskov said yesterday that Putin does not intend for the time being to communicate with the American President, and at the same time he denied Putin's intention to make contacts with Russian oil producers before the "OPEC Plus" conference.

Awkward position
The writer says that the failure of the talks at the next OPEC Plus meeting, along with the great controversy that this file will raise in media platforms, will push the markets to a state of frenzy. This fear and the continued deterioration of the demand base will pose a serious dilemma for the oil markets.

He pointed out that if OPEC Plus cuts its production without the help of other countries, it would lose its influence in the future, and the markets could eventually collapse.

The writer concludes that in the face of not taking any new step, Saudi Arabia and Russia can continue to delude the world that OPEC Plus's production cuts would save the markets.