13 The Republican Senator sent a letter to the Crown Prince of Saudi Arabia asking for a plan to save oil prices.
Recently, 13 Republican Senators signed a letter to Saudi Crown Prince Mohammad bin Salman and called on the kingdom to halt efforts to boost oil production and reduce crude oil prices amid Market scenario witnesses risks from COVID-19 epidemic.
|The United States urged Saudi Arabia to work together to strengthen the crude market. Photo: US President Donald Trump introduces military support package to Saudi Arabia Prince Mohammad bin Salman during his visit to the Kingdom.|
According to the letter, the Senators stressed that the global oil market is undergoing volatility and instability with plummeting oil prices as “an undesirable development”.
“The United States has been a strong and reliable partner for Saudi Arabia for decades. In this close strategic relationship, considering the instructions from the Kingdom’s Ministry of Energy in reducing oil prices. Crude and increasing production capacity is very important. This has contributed to disrupting global oil prices in financial markets that have been severely affected, “said the letter.
“Saudi senior government leaders have repeatedly told US officials and us that the Kingdom of Saudi Arabia is a force for stability in the global market. But recent actions by The Saudis have questioned this role “- the US Senators expressed their views.
In order to have a stronger exchange related to the crude oil market, the US Senators said they would like to set up a meeting with the Saudi Embassy staff in the United States and Princess Reema bint Bandar al Saud to Discuss further ways of dialogue related to stabilizing the crude oil market.
The letter was backed by Republican Senator Dan Sullivan of Alaska and Senator Kevin Cramer of North Dakota.
Progress on the oil market continues to deteriorate. Ending the session on 17/3, WTI light sweet crude oil prices fell 6.1%, stopping at $ 26.95 / barrel. Data on the Dow Jones Market shows that this is the lowest price in the past 4 years (from February 2016).
After surging to 27.07 – 27.36 USD / barrel, in the early afternoon of March 18 (Vietnam time), WTI oil was pulled down to 26.35 USD / barrel for April delivery. May stood at 26.89 USD / barrel, delivered in June at 27.63 USD / barrel.
Similarly, Brent oil fell by 0.5%, stopping at 28.5 USD / barrel, and by the beginning of the afternoon it continued to decline, to 28.28 USD / barrel delivered in May, also the lowest level in the past 4 years. (from January 2016).
Oil prices continuously plummeted after Russia and OPEC member countries embarked on a new oil price war.
On March 18, Saudi Arabia announced plans to increase oil exports to more than 10 million barrels a day, an increase of 250,000 barrels a day. The move continued after a series of statements from the Riyadh authorities indicating they were willing to lower crude oil prices to their peak.
Saudi energy giant Aramco reduces the price of oil sold to its “major” partners, mainly China, the most important customers of both Saudi Arabia and Russia as well as the United States. At the same time Aramco pledges to produce an astonishing 2 million bpd a day in the coming weeks.
Saudi Crown Prince Bin Salman is preparing emergency funding for this year with the scenario of oil price at 12 USD / barrel.
Meanwhile, Moscow reached out to its customers in Kazakhstan and announced that it would not cut production. The country’s budget can still stand for 6-10 years if oil prices stay at $ 25 / barrel.
According to Bloomberg, the actions of Saudi Arabia and Russia “can be considered as self-destructive acts”. Meanwhile, low oil prices made the profitability of the US shale rigs more difficult and faced the decision to close, cut manpower.
The US stock market and bond market also “went crazy” due to the impact of the sharp decline in crude oil prices and the impact of COVID-19 epidemic. In the wake of the panic of the market, US President Donald Trump has revealed the possibility of adopting a $ 1,000 billion bailout package including cash for the American people.