Trump says global oil production could be cut by as much as 15 million barrels

Trump says global oil production could be cut by as much as 15 million barrels

President TrumpDonald John TrumpBubba Wallace to be driver of Michael Jordan, Denny Hamlin NASCAR team Graham: GOP will confirm Trump's Supreme Court nominee before the election Southwest Airlines, unions call for six-month extension of government aid MORE on Thursday said global oil production could drop by 10 million to 15 million barrels in light of talks between Russia and Saudi Arabia.

Russia, however, is reportedly denying those talks took place. 

"Just spoke to my friend MBS (Crown Prince) of Saudi Arabia, who spoke with President Putin of Russia, & I expect & hope that they will be cutting back approximately 10 Million Barrels, and maybe substantially more which, if it happens, will be GREAT for the oil & gas industry!" he tweeted, referring to Saudi Crown Prince Mohammed bin Salman. 

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"Could be as high as 15 Million Barrels. Good (GREAT) news for everyone!" Trump added. 

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Trump told CNBC that he expects the crown prince and Russian President Vladimir PutinVladimir Vladimirovich PutinNavalny calls on Russia to return clothes he was wearing when he fell ill Democrats fear Russia interference could spoil bid to retake Senate Putin is about to turn his attention to the American way of life MORE to announce a production cut deal.

Putin spokesman Dmitry Peskov, however, denied that Putin spoke with the Saudi prince. 

He told the Financial Times that “there was no conversation” between the two leaders. 

Oil prices surged after the president's announcement, and were at about $25 per barrel shortly before midday.

Russia recently declined to join OPEC members in agreeing to cut production in response to a drop in demand due to the coronavirus pandemic.

After that, Saudi Arabia decided to increase its own production, flooding the market. The country's state-owned oil company said last month that it would increase its production by 300,000 barrels per day.

U.S. producers have been hit by the increased supply coupled with the decreased demand. 

Trump told reporters on Wednesday that he had "great" calls with the leaders of both countries, and said he had "confidence in both that they'll be able to work it out."

"I think that Saudi Arabia, Russia, they're negotiating. They're talking. And I think they'll come up with something," he said.

He also told reporters on Wednesday that he planned to meet with oil companies on Friday and independent oil producers on Friday or Saturday, as the administration weighs steps to help the industry amid the drop in prices.