Pressed By Oil Prices And The Coronavirus Pandemic, The U.S. Sends Letter To The Prince To Halt Price War With Russia
A dozen U.S. Republican senators are asking the world’s largest oil exporter, Saudi Arabia, to reconsider plans to significantly increase oil supply to the market and lower oil prices as the world faces the coronavirus pandemic.
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In a letter to Saudi Crown Prince Mohammed bin Salman, the 13 Republican senators led by Dan Sullivan of Alaska and Kevin Cramer of North Dakota stated that the extremely volatile and unstable global oil market with falling oil prices is “an undesirable development.”
“The United States has been a strong and reliable partner to the Kingdom for decades. In light of this close strategic relationship, it was very concerning to see guidance from the Kingdom’s Ministry of Energy to reduce oil prices and increase production capacity. This contributed to a disruption in global oil prices, along with already more affected financial markets,” the senators said, representing mainly U.S. producing states like Alaska, Texas, Oklahoma, North Dakota, and Louisiana.
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The oil price war between Saudi Arabia and Russia, following the collapse of the OPEC+ agreement, is widely seen as a market share war and an effort to push U.S. shale producers away, as few of them make money at $30.
“Senior Saudi government leaders have repeatedly told U.S. officials, including us, that the Kingdom of Saudi Arabia is a force of stability in global markets. Recent Saudi actions have questioned this role. We urge the Kingdom to assert constructive leadership in stabilizing the global economy, calming economic anxiety in the oil and gas sector at a time when countries worldwide are facing the pandemic,” the U.S. senators wrote in their letter to the Saudi Crown Prince.
Earlier this month, U.S. shale mogul Harold Hamm was preparing to file an official complaint against Saudi Arabia with the U.S. Department of Commerce, after the Kingdom promised to unleash a flood of oil into the markets, sending oil prices to rock bottom.

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