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The OPEC+ group, the cartel plus Russia is scheduled to hold a video conference on Thursday to discuss how to bolster oil prices. Joseph Trevisani, an analyst at FXStreet, recaps the oil market situation.

Key quotes

“The war of threats between Saudi Arabia and Russia sent prices already under heavy pressure from the expected demand destruction, cascading lower. The finances of both nations are heavily dependent on oil revenues.”

“The US finds itself in the unusual position of agreeing with its two largest oil competitors, countries its shale production had dethroned as the world’s leading driller, an achievement touted by the Trump administration. Price pressures have made common cause.”

“Many US shale companies are heavily leveraged and a prolonged period of low prices could do serious damage to the industry. The bankruptcy rate would soar.”

“Even for a market long inured to violent movement, the turnaround among the major players has been remarkable.”