Russia has partnered with OPEC and other producer nations since 2017 to manage nearly half of the world's oil supply. The countries took action after crude prices sank to 12-year lows in 2016, piling pressure on oil-dependent economies and bankrupting hundreds of U.S. energy companies.
The United States, where drillers compete in a free market, is not part of the deal. U.S. laws prohibit companies from colluding to fix prices, and a bipartisan group of U.S. Congress members recently revived a push to punish OPEC for alleged price-fixing.
Still, Putin suggested that some form of cooperation is possible during a press conference with U.S. President Donald Trump in Helskinki on Monday.
"I think that we as a major oil and gas power, and the United States as a major oil and gas power as well, we could work together on regulation of international markets, because neither of us is actually interested in the plummeting of the prices," Putin said.
"But nor are we interested in driving prices up because it will drain a lot of juices from all other sectors of the economy, so we do have space for cooperation here," he said.
Trump has demanded that OPEC tame fuel costs, after a slow-and-steady rally accelerated this year. Led by Saudi Arabia and Russia, the two dozen producer nations last month agreed to hike output to offset falling output in Venezuela and looming U.S. sanctions on Iran, the world's fifth largest oil producer. -- CNBC
Who is Behind the Putin/Trump Energy Cooperation Proposal? An Educated Guess
Henry Kissinger is a well known agent of the oil empire building Rockefeller family who infamously set up the petrodollar arrangement using the Arab oil embargo as cover, replacing the (Vietnam War and Great Society program costs) wrecked gold standard under President Nixon; and that Trump's first major foreign policy speech denouncing globalism and calling for Nixonian détente with Russia and China was delivered with then Russian Ambassador Sergey Kisylak in attendance at the Nixon Center, just months after Kissinger met Putin and then Trump in the winter/spring 2016. It was Kissinger's meetings with Putin and then at Trump Tower in sequence which convinced W the Intelligence Insider that a segment of the global elites were willing to give Trump a shot against the overwhelmingly favored choice of the Establishment, Hillary Rodham Clinton.
Although the Russian Analyst doesn't like feeding the Russiagate crazies, the fact is there's some nexus there -- as well as between Trump's team and the Russian Jewish/Israeli communities plus the Zionist casino magnate Sheldon Adelson. We've extensively discussed the topic of team Trump's 'Russiagate' outreach to Amb. Kisylak during the transition (including Lt. Gen. Flynn's entirely legal phone conversations) actually being Israel-gate in our Syraq SITREPs. The Russian Analyst, borrowing terminology from RogueMoney's Swiss White Russian friend The Saker, refers to this as the revolt of the Zionist faction against the Anglo side of the Anglo-Zionist empire, and the reaffirmed triangle between Trump, Putin and Netanyahu confirms it.
The miserable failure of the globalists and Obama Administration Syria regime change policy which had been intended to pipe Qatari gas and Saudi oil through a post-Assad Levant to Turkey and thence to Europe, thereby beggaring Russia, prompted a 'radical' Trumpian response. In the Russian Analyst's opinion, Putin’s U.S.-Russia supersized OPEC proposal has Kissinger-ian fingerprints all over it. When viewed from the perspective of the alleged 'mob war' between the world's two most famous 'R' families associated with globalism and purported Rockefeller bastard William Jefferson Blythe Clinton, is an intriguing anomaly. But perhaps in his old age Henry K, ever the opportunist, saw the writing on the wall and switched to what he saw as the winning team.
Former Texas Governor Rick Perry and the Trump Push for an American Petrostate
Given that Great Britain, Japan, the European Union centered on Russian-gas dependent Germany (which Trump blasted during the recent NATO summit), Korea and China are all net importers rather than producers of oil, cooperation with Russia could -- in theory at least -- extend the life of a dying petrodollar by strengthening demand for the dollar, while reducing the massive US trade deficit. The Russian Analyst knows for a fact that several Texas oilmen (most of them not household names but one married into a family who were) who make up a significant part of the Republican Party's financial base have been looking to invest in Russia's China pipeline feeding Bazhenov shale formation in western Siberia for over a decade. The collapse of the oil price during the 2008-09 crash, followed by the Obama imposed sanctions after the CIA/State Department directed coup in Ukraine, shelved those plans. But if sanctions on Russia were somehow eased by the end of Trump's second term, they could be revived, along with U.S. corporations participation in the Belt and Road megaprojects through Russia and the 'Stans.
Texas' Eagleford Shale, along with the Bakken formation in North Dakota and expanded drilling offshore and Alaska, are part of Trump's strategic plan together with former Governor Rick Perry to revive American energy output and achieve a more favorable balance of payments. So far the plan has succeeded in exceeding Hubbert's peak of 1970 -- the alleged maximum production output Peak Oil theorists said the U.S. would ever achieve -- thanks to the Administration's dismantling of Obama era regulations that held back drilling and crude exports. However, formidable obstacles to 'trust the plan' remain.
Permian Basin employers in the West Texas boom/bust towns Odessa and Midland can't find enough workers and housing prices are spiking amidst skilled labor shortages. This was also the case during the last boom in 2006-2008, but some American men with families are wary of uprooting and moving to 'nowhere', only to be cut loose after another quick bust. Venezuelan production is collapsing so fast at a time of renewed Iran sanctions that prices were threatening to pop, before the recent Saudi increase in production publically requested by President Trump. Unrest in Iraq and Libya continue to keep those OPEC countries from achieving anywhere close to their export potential. Mexico's new leftist president Andrés Manuel López Obrador (AMLO) is determined to increase production again as the country's 1970s discovered Cantarell field in the Gulf of Mexico rapidly depletes. Russia's ally China is eagerly buying the Iranian crude which the Indians stopped buying, while deliberately snubbing American petroleum in the trade war.
Curbing Your Enthusiasm: The Deep State Will Try to Scuttle Any Cooperation in the Oil Markets and Remains Opposed to Constructive Ties Between the U.S.-Russia in All Areas
Russia's neighbor across the Black Sea Turkey is another spoiler. Islamist authoritarian President Recep Tayyip Erdoğan shows no signs of quietly submitting to the Trump Administration's threats not to refine Iranian oil when there's money to be made flouting the revived sanctions. Russia is now joined together with Turkey on the Turkstream pipeline, Washington cannot expect Moscow to apply any real pressure on Ankara to comply with American dictates. Nor will the Russians risk their very deep and burgeoning relations with their superpower neighbor China, as a dwindling number of Western realists hope, in order to create a rapprochement with the West -- not while the British-dominated deep state is hellbent on stopping that at any cost.
Smearing the National Rifle Association (NRA) to present the pro-gun part of Trump's base as 'useful idiots for Russia' if not 'literally sleeping with Putin's agents' is just a bonus to the deep state, with Deputy Attorney General Rod Rosenstein not even hiding his satisfaction at releasing a political indictment on the day of the Helsinki Summit. As the Russian Analyst warned RogueMoney readers, operatives like former FBI agent Clint Watts and Andrew Aron Weisburd have made no secret of their intent to label the GOP as the party of Putin irrespective of actual evidence, since 2016, pushing fake news gimmicks like the Hamilton68 Twitter feeds dashboard on anti-Trump journalists.
The defense build up Trump intended to use as a Reaganesque tool of pressure on China in the trade wars continues to be diverted toward anti-Russian ends, forcing Moscow to respond with newly announced anti-satellite weaponry ready to counter Trump's 'Space Force'. Moscow apparently almost completed the process of dumping its US Treasuries this spring, in a sign that it prefers swiss francs, euros, yuan or gold to the overvalued greenback. Meanwhile Congress, despite or because of the Democrats slipping in polls while Trump approval ratings solidify among his base, seems more determined to block any sanctions relief than ever. For Moscow, there is no going back to a dollar dominated world, even in the best case scenario of Trump being reelected and the EU allowing its sanctions to lapse. As London Paul says, trust is everything to Russia and China and their memories are longer than those in the West.
In his interview with Fox News Chris Wallace, Putin was asked about killings targeting journalists and opposition politicians like Anna Politkovskaya and Boris Nemtsov that happened on his watch. Putin replied by referring to political violence in America, including the assassination of President John F. Kennedy. Whether that was a veiled hint to his negotiating partner that Moscow knows of serious plots against Trump's life, remains to be seen. The alternative media is full of speculation, following Putin's massive tax evasion and money laundering accusations against globalist financier and the Communist Party USA founder's grand son Bill Browder, that Trump received the goods from Putin on their mutual deep state enemies. Obama's former Ambassador to Russia Michael McFaul, who was effectively forced out of Russia by the FSB after they determined he was plotting a Maidan-style color revolution in Moscow, is apoplectic with rage that anyone on Trump's team was willing to hear the Russian criminal allegations against him.
The Russian Analyst will believe Trump and Putin are cooperating against the globalist criminals when we see action against deep state figures who, so far, appear convinced that indicting Russians for hacking and sex-spionage right before and during the Helsinki Summit and subsequent legacy media 'collusion/treason' spin will work. The Russians are not going to put all their eggs in the MAGA basket -- and neither should RogueMoney's audience. The fight for a better world goes on...with energy, including the peace pipeline Moscow wants to build through the Koreas Trump seems to have blessed after his Xi and Putin meetings, a major part of the new paradigm.