Washington Examiner: GOP senators push Saudis to stop flooding oil market

A group of senators is asking Saudi Arabia to end its oil price war with Russia and stop flooding the international market.Thirteen Republican senators signed a letter sent to Saudi Crown Prince Mohammed bin Salman on Monday. The lawmakers argue that Saudi oil production is harming the global response to the coronavirus pandemic.

"As the United States and the rest of the world — including the Kingdom of Saudi Arabia — are dealing with COVID-19 pandemic response, mitigation and prevention efforts, the added impact of unsettled global energy markets is an unwelcome development," the letter read.

"It was greatly concerning to see guidance from the Kingdom’s energy ministry to lower crude prices and boost output capacity. This has contributed to a disruption in global oil prices on top of already hard-hit financial markets," the senators wrote. "We urge the Kingdom to assert constructive leadership in stabilizing the world economy by calming economic anxiety in the oil and gas sector at a time when countries around the world are addressing the pandemic."

The letter was signed by Sens. Dan Sullivan and Lisa Murkowski of Alaska, Kevin Cramer and John Hoeven of North Dakota, Ron Johnson of Wisconsin, John Cornyn and Ted Cruz of Texas, John Kennedy and Bill Cassidy of Louisiana, John Barrasso of Wyoming, Tom Cotton of Arkansas, and James Lankford and James Inhofe of Oklahoma.

Russia and Saudi Arabia entered into a price war in early March, both overproducing oil in an attempt to drive the other out of international markets. On March 6, Russia backed out of a three-year agreement with Saudi Arabia to cut oil production. Saudi Arabia retaliated by boosting its oil production, sending the international price for oil plummeting.

By:  Tim Pierce
Source: Washington Examiner