Trump Administration’s Oil Diplomacy Looks Like Good Cop-Bad Cop

(Bloomberg) -- The Trump administration’s approach to correcting the oil market’s historic meltdown is starting to look like a case of good cop-bad cop.

While President Donald Trump remains optimistic that Saudi Arabia and Russia will work out a deal to stabilize the oil market, his Energy Department took to scolding the Middle Eastern kingdom for defying U.S. calls to curb its output.

“Boosting production during this time of an unprecedented loss in global demand is frustrating, and does not represent the kind of deliberative planning we would like to see from partners,” the agency said in a statement.

The kingdom has so far resisted U.S. pressure to back down from its price war with Russia, moving forward with its plan to pump record volumes of oil even as the coronavirus pandemic obliterates global demand.

Moments after the Energy Department statement went out, Trump told reporters during a press conference that he thinks the nations “will work it out over the next few days.”

“They both know what they have to do,” he said. “I have confidence in both that they will be able to work it out.”

The president on Tuesday said he had spoken with Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman about the matter. He added that the U.S. would meet with the two countries in order to stem the historic plunge in crude prices that is threatening to decimate the oil industry.

Energy Secretary Dan Brouillette this week spoke with Russian Energy Minister Alexander Novak but the call ended without a public plan for action. The agency on Wednesday said, “Secretary Brouillette remains fully engaged with his counterparts in other major producing nations during this time of turmoil in global oil markets.”

“We urge the Kingdom of Saudi Arabia, Russia and other major producers to work together to calm markets during these turbulent times,” said the statement.

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