RUSH TRANSCRIPT Romaine welcome ░░░░░░░░ to bloomberg markets a ░░░░░░░░ It is time for ░░░░░░░░ Street week daily segment ░░░░░░░░ host of Wall Street ░░░░░░░░ joining us as he ░░░░░░░░ every day at this ░░░░░░░░ David Westin We were ░░░░░░░░ the potential for a ░░░░░░░░ with OPEC plus David ░░░░░░░░ and there was a ░░░░░░░░ there is good news ░░░░░░░░ oil The S P ░░░░░░░░ vice chairman we speak ░░░░░░░░ Dan Yergin welcome It ░░░░░░░░ like Saudi Arabia was ░░░░░░░░ a decision and leaving ░░░░░░░░ others behind Why did ░░░░░░░░ Arabia go on its ░░░░░░░░ Dan I think it ░░░░░░░░ itself as the central ░░░░░░░░ of oil And the ░░░░░░░░ minister said they would ░░░░░░░░ anything to stabilize the ░░░░░░░░ They have a million ░░░░░░░░ a barrel cut in ░░░░░░░░ million a day cut ░░░░░░░░ July This was to ░░░░░░░░ the price from slipping ░░░░░░░░ David you understand this ░░░░░░░░ well and I don ░░░░░░░░ If they thought it ░░░░░░░░ tighten at the end ░░░░░░░░ the year why is ░░░░░░░░ cut in production making ░░░░░░░░ big of a difference ░░░░░░░░ because the demand has ░░░░░░░░ been what people thought ░░░░░░░░ s been disappointment over ░░░░░░░░ and uncertainty about the ░░░░░░░░ States So they don ░░░░░░░░ want to get in ░░░░░░░░ situation where prices slide ░░░░░░░░ and you have a ░░░░░░░░ time climbing out of ░░░░░░░░ Petroleum producers have seen ░░░░░░░░ before This unilateral cut ░░░░░░░░ to show they will ░░░░░░░░ the market stable and ░░░░░░░░ to the second half ░░░░░░░░ the year for a ░░░░░░░░ market Romaine I am ░░░░░░░░ as to how much ░░░░░░░░ an accurate read we ░░░░░░░░ getting right now on ░░░░░░░░ supply picture There s ░░░░░░░░ a lot of focus ░░░░░░░░ what Saudi Arabia is ░░░░░░░░ and the other major ░░░░░░░░ Russia is still the ░░░░░░░░ in the room There ░░░░░░░░ distortion as to what ░░░░░░░░ are producing and where ░░░░░░░░ is being sold Dan ░░░░░░░░ the big uncertainty is ░░░░░░░░ production It does not ░░░░░░░░ down as they said ░░░░░░░░ would That is one ░░░░░░░░ the issues left on ░░░░░░░░ table what was Russia ░░░░░░░░ quota under But at ░░░░░░░░ point the game that ░░░░░░░░ is playing is what ░░░░░░░░ good for Russia s ░░░░░░░░ effort and that is ░░░░░░░░ get as much oil ░░░░░░░░ and get revenues Even ░░░░░░░░ the revenues are less ░░░░░░░░ what they otherwise would ░░░░░░░░ because of the price ░░░░░░░░ the west has put ░░░░░░░░ Russian oil they are ░░░░░░░░ certainly doing everything they ░░░░░░░░ to get around it ░░░░░░░░ what a range in ░░░░░░░░ oil market To your ░░░░░░░░ ago we had no ░░░░░░░░ from Russia but now ░░░░░░░░ is the largest buyer ░░░░░░░░ Russia Romaine do you ░░░░░░░░ any sense of what ░░░░░░░░ relationship is right now ░░░░░░░░ the Saudi s and ░░░░░░░░ Russians and it comes ░░░░░░░░ the energy space Dan ░░░░░░░░ think it is somewhat ░░░░░░░░ Different focuses originally OPEC ░░░░░░░░ was a Saudi Russian ░░░░░░░░ organization now it is ░░░░░░░░ a Saudi red Saudi ░░░░░░░░ organization Russia stands by ░░░░░░░░ both have an interest ░░░░░░░░ maintaining OPEC plus but ░░░░░░░░ think Russia s eyes ░░░░░░░░ elsewhere right now David ░░░░░░░░ you think Saudi Arabia ░░░░░░░░ disappointed in the market ░░░░░░░░ today Dan yeah I ░░░░░░░░ it went up and ░░░░░░░░ it came down The ░░░░░░░░ minister describe it as ░░░░░░░░ model lollipop market We ░░░░░░░░ in June and this ░░░░░░░░ a cut that to ░░░░░░░░ in July place in ░░░░░░░░ It lowers expectations but ░░░░░░░░ does not go into ░░░░░░░░ That is a strong ░░░░░░░░ for Saudi Arabia to ░░░░░░░░ we are cutting production ░░░░░░░░ one million barrels a ░░░░░░░░ David oversimplified we watched ░░░░░░░░ duet between shell in ░░░░░░░░ United States and what ░░░░░░░░ are doing I know ░░░░░░░░ we have new permitting ░░░░░░░░ right Dan right New ░░░░░░░░ meaning provisions new permitting ░░░░░░░░ missions provisions and less ░░░░░░░░ on the pandemic that ░░░░░░░░ have in the United ░░░░░░░░ Not being able to ░░░░░░░░ things permitted But we ░░░░░░░░ that shale is not ░░░░░░░░ as much as we ░░░░░░░░ a few months ago ░░░░░░░░ is still caution and ░░░░░░░░ As you see in ░░░░░░░░ market Shell producers are ░░░░░░░░ on getting money to ░░░░░░░░ which is their new ░░░░░░░░ contract that they need ░░░░░░░░ do to maintain their ░░░░░░░░ in the financial markets ░░░░░░░░ re not getting the ░░░░░░░░ boost that you might ░░░░░░░░ expected Give a change ░░░░░░░░ in the year if ░░░░░░░░ see oil prices in ░░░░░░░░ high 80 s that ░░░░░░░░ fundamentals really come together ░░░░░░░░ a way that people ░░░░░░░░ expect them to So ░░░░░░░░ really hinges on the ░░░░░░░░ economy and in particular ░░░░░░░░ fact that China the ░░░░░░░░ out of China is ░░░░░░░░ like what we got ░░░░░░░░ of 2008 It s ░░░░░░░░ been a barn burger ░░░░░░░░ many people had hoped ░░░░░░░░ are you surprised by ░░░░░░░░ Dan I think somewhat ░░░░░░░░ by it You thought ░░░░░░░░ is pent up demand ░░░░░░░░ into energy human energy ░░░░░░░░ people want to get ░░░░░░░░ to work But it ░░░░░░░░ not as strong You ░░░░░░░░ some things that are ░░░░░░░░ positive like travel in ░░░░░░░░ but on the other ░░░░░░░░ and it is lackluster ░░░░░░░░ do you think what ░░░░░░░░ Biden Administration did in ░░░░░░░░ with the Strategic Petroleum ░░░░░░░░ they are trying to ░░░░░░░░ it back up now ░░░░░░░░ that have a meaningful ░░░░░░░░ on prices and the ░░░░░░░░ that OPEC plus has ░░░░░░░░ making Dan it certainly ░░░░░░░░ an impact on prices ░░░░░░░░ was unprecedented And I ░░░░░░░░ OPEC plus was watching ░░░░░░░░ carefully and continuing to ░░░░░░░░ it You know it ░░░░░░░░ really about there was ░░░░░░░░ concerned about price Or ░░░░░░░░ began the first release ░░░░░░░░ before the Ukraine more ░░░░░░░░ And there was a ░░░░░░░░ of focus of what ░░░░░░░░ happening with gasoline rises ░░░░░░░░ into prices going into ░░░░░░░░ 2022 midterm election David ░░░░░░░░ we talked about Saudi ░░░░░░░░ is supporting the price ░░░░░░░░ the time being Right ░░░░░░░░ it was not necessarily ░░░░░░░░ good deal when you ░░░░░░░░ at how many fewer ░░░░░░░░ they have in revision ░░░░░░░░ does this pricing need ░░░░░░░░ get to for it ░░░░░░░░ be a good deal ░░░░░░░░ them David Dan it ░░░░░░░░ gets cited that the ░░░░░░░░ they need is around ░░░░░░░░ I ve seen over ░░░░░░░░ years that whenever they ░░░░░░░░ this data price they ░░░░░░░░ varies with what the ░░░░░░░░ is at any given ░░░░░░░░ Certain they have ambitious ░░░░░░░░ economic program under 2023 ░░░░░░░░ need revenues So Saudi ░░░░░░░░ accesses central bank and ░░░░░░░░ is trying to take ░░░░░░░░ longer midterm effort to ░░░░░░░░ that the kingdom has ░░░░░░░░ it means for its ░░░░░░░░ It does not want ░░░░░░░░ price in below 80 ░░░░░░░░ anywhere close to him ░░░░░░░░ they do have a ░░░░░░░░ after all It is ░░░░░░░░ to talk with you ░░░░░░░░ these things as always ░░░░░░░░ is a big story ░░░░░░░░ not as much as ░░░░░░░░ Arabia may have thought ░░░░░░░░ would be Romaine and ░░░░░░░░ question is what comes ░░░░░░░░ At the end of ░░░░░░░░ day they have to ░░░░░░░░ through or not David ░░░░░░░░ we hear from the ░░░░░░░░ bank.