The U.S needs high oil prices...and so does Russia. Sometimes it almost seems as if the U.S and Russia are partners. They are like scissors, creating conflicts and cutting down oil producing nations...Iran, Venezuela, Libya..
They are both stuck with the same unfortunate reality, and that is there is only so much the economy can afford to pay for oil. There is only a finite number of BTU that can be supplied to the economy from a gallon of finished product, and that is going down. Since the industry is no longer replacing its reserves it is having a going out of business sale. The product is likely to be sold at any price they can get for it above their lifting cost. Growth is no longer a part of the equation, and it is no longer even being talked about. They are playing the last hand before the deck burst into flames.
The IEA, in its monthly report for April, pointed out that demand was a “very important” piece of the equation for oil market rebalancing and that faced a wall of uncertainty given the less-than-stellar outlook for the global economy.
https://www.investing.com/news/commodit ... 70-1833948