U.S. Risks Ceding Top-Producer Status to Saudis on Output Cuts
- U.S. has been top producer for two years, but now Saudis loom
- A million-barrel-a-day drop seen for 2020 if $30 price sticks
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For more than two years, the U.S. has been the world’s No. 1 oil producer, a status often hailed proudly by President Donald Trump. Now, the crown is at risk.
The U.S. standing has largely been based on a concession from Saudi Arabia, which orchestrated output curbs in tandem with Russia that helped prop up prices. But with the Saudis now threatening to flood the world with oil after its production pact fell apart, prices are in free-fall, having dropped by half in two months to around $30 a barrel.