After his highly controversial summit with President Donald Trump, Russian President Vladimir Putin has stated that the two administrations are planning to work on stabilizing oil prices. The value of oil has been quite volatile during the last couple of years, often changing and destabilizing its producers’ economic welfare. Last year, Russia partnered with OPEC and oil-producing countries for oil production, and ended up being in control of near half of the world’s oil supply. The potential cooperation with Washington would make sense, since President Trump has openly criticized OPEC for rising oil prices.

The Russian motion of cooperating with them came after oil prices faced a 12-year low a year before the deals, and followed pressure and advise from oil-dependent economies across the world. The U.S. was not part of this deal due to its heavy opposition towards fixing prices. However, Vladimir Putin seemed to indicate that there might be a collaboration between the two in the near future. During the press conference in Helsinki, he stated :

I think that we as a major oil and gas power, and the United States as a major oil and gas power as well, we could work together on regulation of international markets, because neither of us is actually interested in the plummeting of the prices. But nor are we interested in driving prices up because it will drain a lot of juices from all other sectors of the economy, so we do have space for cooperation here.”

The statement showed some agreement with what president Trump had been advocating for some time. After a surprisingly high rise during Independence day this year, Trump tweeted about the complaints of many Americans who were planning on road-tripping for the day. It included an all-caps order at the end, which was most likely targeted to intimidate rather than to push new legislation forward or engage in dialogue with OPEC.  Trump’s tweet read:

“The OPEC Monopoly must remember that gas prices are up & they are doing little to help. If anything, they are driving prices higher as the United States defends many of their members for very little $’s. This must be a two way street. REDUCE PRICING NOW!”

American drillers have found themselves in an advantaged position inside the oil market, as they use new technologies like hydraulic fracturing. The measures creates a more effective production process and has increased the oil productions to all time highs. Even though American producers have managed to increase their output, they still struggle with the sales themselves, as their LNG is much higher than the one from European producers. This could be their opportunity to finally have a breakthrough in the European oil and gas market.

Touching on the subject, President Trump said:

We’ll have to be competing with [the Germany-Russia Nord Stream 2 pipeline], and I think we’ll compete successfully, although there is a little advantage locationally, so I just wish them luck.”

Putin has also addressed the NS2 pipeline, which angered President Trump after its confirmation. The Russian leader explained that Ukraine will still be receiving natural gas when the pipeline is done, and that the country will still be part of the oil market. The pipeline project was mainly disapproved by Trump because of the close relation it would create between the two countries involved, saying that Germany is “controlled” by Russia. However, he does not seem to have many restraints or issues with his country making business with Russia.