Takeaway: Former OPEC President and Hedgeye analyst Joe McMonigle discussed next steps in the oil price war and potential off-ramps


Replay | Energy Policy: Oil Price War

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Former OPEC President and former Algerian energy minister Chakib Khelil and Hedgeye's Energy Analyst Joe McMonigle held a conference call for clients on Tuesday, March 24 and discussed next steps in the oil price war between Saudi Arabia and Russia as well as potential off-ramps in the near-term.

The brutal oil price war that started after the collapse of the OPEC+ talks in Vienna on March 6 may be subsiding amid recent notable signs from Russia, Saudi Arabia and now possible Trump intervention conveyed this week.

Trump commented on the oil price war during one of his COVID19 press conferences last week and took a significant pivot on oil prices from cheering lower oil prices to concern about US energy jobs losses and “hurting a great industry.” 

In his comments on energy, Trump said “we are trying to find some kind of medium ground” adding that he “spoke to numerous people who have a lot to do with it and we have a lot of power over the situation.” Trump concluded his comments by saying “at the appropriate time, I’ll get involved.”

McMonigle and Khelil discussed the latest views from OPEC, Russia, Trump administration as well as possible developments over the next few weeks of oil markets.