Though the U.S. and Canada are not part of the “OPEC Plus” group, President Trump has been leading negotiations between Saudi Arabia and Russia to broker a deal and stop their price war. Today President Trump announces an agreement between the major petroleum exporting countries to curb oil production by approximately 10 million barrels per day:

Additionally, there was a loggerhead within the negotiations as Mexico did not want to cut their production by the requested amount of 400,000 barrels daily. Mexico relies on oil as a large part of their economy. AMLO stated his economy could not withstand such a significant drop in state revenue. Economic security is, after all, national security.
President Trump broke the OPEC+ stalemate by agreeing to decrease U.S. production by 300k/barrels allowing Mexico to drop a more manageable 100k/barrels. Trump and AMLO reached an undisclosed agreement where Mexico will reimburse the U.S. later on.
I suspect the “reimbursement” will be more, well, strategically geopolitical than financial. [*nudge-nudge*, *wink-wink*, *say-no-more/say-no-more*] President Trump has an uncanny knack of collecting leverage for later, more strategic, purposes. Just sayin’.
(more…)
Posted in Big Government,
Budget,
China,
Communist,
Coronavirus,
Decepticons,
Deep State,
Donald Trump,
Economy,
Election 2020,
energy,
Mexico,
Military,
President Trump,
Russia,
Saudi Arabia,
Trade Deal,
Uncategorized,
US Treasury,
USA,
USMCA