The Russian government had originally forecast a surplus of 930 billion rubles ($11.4 billion) in 2020, but after the outbreak of the price war, it said it expected a deficit. The ruble fell after falling more than 30 percent between early 2020 and March 18.  Many analysts and investors are optimistic that there will be some kind of agreement, but Stephen Schork, founder of the energy newsletter The Schork Report, is not one of them. He projected that the U.S. could cost wTI to a figure. Oil prices jumped on Thursday over reports that Saudi Arabia and Russia reached an agreement on production cuts at an emergency meeting between the Organization of Petroleum Exporting Countries and its allies, known as OPEC. At the same time, months of oil price wars between Saudi Arabia and Russia have left the world market with far more crude oil than is needed. The huge impact on the U.S. energy sector has led Washington to try to negotiate an agreement between Saudi Arabia and Russia. For more than a month, Russia and Saudi Arabia have been in a price war that has destabilized the global oil market. Following the virtual conference call of OPEC members on Thursday, the G20 energy ministers will meet on Friday. The difference in WTI delivery prices between months led to abnormally high contango; Buy cheap physical oil for storage for later sale.   Last week, crude oil prices soared after US President Donald Trump hinted that a deal was imminent.
Later, on 3 April, the Saudi foreign and energy ministers issued statements criticizing Putin and accusing Russia of not participating in the OPEC agreement.  Following the COVID 19 pandemic, plant production and transportation declined, which also reduced aggregate oil demand and drove down oil prices.  February 15, 2020, the International Energy Agency forecast that demand growth would fall to its lowest level since 2011, with growth of 325,000 barrels per day over the full year, to 825,000 barrels per day and a decline in consumption of 435,000 barrels per day in the first quarter.  Although global oil demand has declined, a drop in demand in Chinese markets, the largest since 2008, triggered an OPEC summit on March 5, 2020 in Vienna. At the summit, OPEC agreed to further reduce oil production by 1.5 million barrels per day by the second quarter of the year (an overall production cut of 3.6 million bpd from the original 2016 agreement), and the group is expected to review that policy on June 9 at its next meeting.  OPEC has asked Russia and other non-OPEC members to comply with OPEC`s decision.  On 6 March 2020, Russia rejected the request, marking the end of the unofficial partnership, as oil prices fell by 10% after the announcement.  If Russia and Saudi Arabia reach an agreement with or without the United States, it will not enter into force immediately. According to Livingston, it would take weeks to fully implement.