Oil cuts

Trump recently worked out a deal with Russia and Saudi Arabia to cut the world oil supply by 10%. While in those two countries the government can demand cuts the same is not true in the US. U.S. antitrust law prohibits oil companies from coordinating their production, and there is no direct mechanism for the government to dictate production levels to private oil companies. “U.S. production has already been cut because we're a market driven economy and oil is very market driven. They've been cutting oil all over the place,” Trump said. The Energy Department has said that American oil production will fall by at least two million barrels a day by the end of the year. Other analysts say the eventual cut could be three million barrels a day out of the 13.3 million barrels a day produced at the beginning of the year.