What's Next For Oil Prices? Putin, MBS Inching Closer To Announce New Production Deal

Oil prices are projected to open lower Monday, as Russia and Saudi Arabia continue their dispute over the ongoing price war. Earlier in the week, President Trump claimed that Russia and Saudi Arabia had reached a deal on cutting production but the two sides are now blaming each other for the crash in prices.

Oil prices have dropped by two-thirds this year, as both Saudi Arabia and Russia ramp up production in a race for market share. Saudi Arabia had originally wanted to cut production amid lower demand due to the ongoing coronavirus pandemic, but Russia refused, as Moscow believed this would benefit the U.S. shale industry.

Diplomats working on the deal said Sunday that there has been some progress. A meeting of OPEC-plus producers is set to take place Thursday, with Russia and Saudi Arabia wanting the U.S to join the negotiations. The U.S. has become the largest oil producer in the world due to the shale revolution.

The U.S. will likely not enter the discussions, with Trump saying Saturday that he has opposed OPEC his entire life. In 2012, Trump posted on Twitter that OPEC is "robbing our country blind."

Trump has threatened to enact tariffs in order to protect the U.S. energy industry, as American shale companies have been devastated due to the ongoing price war.

"If I have to do tariffs on oil coming from outside or if I have to do something to protect our ... tens of thousands of energy workers and our great companies that produce all these jobs, I'll do whatever I have to do," Trump told reporters at a White House press briefing.