Source: Washington – Reuters
US President Donald Trump said on Thursday that he would engage in an oil price war between Saudi Arabia and Russia at the appropriate time, adding that low gasoline prices are good for American consumers even if they harm the sector.
Saudi Arabia and Russia are locked in a battle over market shares after this month their agreement to curb three-year production collapsed.
Countries are pumping oil at full capacity, at a time of sharp decline in global demand due to the spread of the Coruna virus, which pushed prices down to their lowest levels in nearly 20 years this week.
“We’re trying to find some kind of compromise,” Trump told reporters at a White House press conference, explaining that he had spoken to several people about the conflict.
“It is very devastating for Russia, their entire economy depends on that and oil prices have become the lowest in decades so it is very destructive for Russia. I will intervene at the appropriate time,” he said.
The Wall Street Journal reported yesterday that the Trump administration was considering pushing Saudi Arabia to cut oil production, in exchange for Russia’s threat of sanctions to stabilize the crude market.
Trump had spoken about oil markets with Saudi Crown Prince Mohammed bin Salman in a phone call on March 9.
The US ambassador to Saudi Arabia, John Abi Zaid, also spoke to the Saudi energy minister last Thursday regarding oil markets, according to the US State Department. But no details have been announced on what took place in these dialogues.