US senators threaten Riyadh with consequences of the oil war

US, WASHINGTON (ORDO NEWS) — A group of US senators on Saturday talked by telephone with the Secretary of Energy and Deputy Secretary of Defense of Saudi Arabia , threatening the consequences of the “oil war” against US producers.

“Although we appreciate the fact that they took the first step towards solving the problem that they contributed to, the Saudis spent more than a month waging war on American oil producers while our troops defended them. It’s not how friends treat friends “Their tricks were unforgivable and will not be forgotten. Saudi Arabia’s next steps will depend on whether it’s possible to maintain our strategic partnership,” said North Dakota Senator Kevin Kremer in a statement posted on his Twitter page.

“The agreement between Saudi Arabia and Russia to stop the flooding of the market and reduce production is a step in the right direction. American producers are driven by global market conditions, and in the future we will work to restore the balance in the market and ensure that these state-owned oil companies (from Russia and Saudi Arabia – ed.) adhered to the agreement, while at the same time we will continue our efforts to support US oil and gas producers, including financing domestic oil purchases production for the strategic oil reserve, “said John Hover, another senator from North Dakota, in turn.

According to Alaskan Senator Dan Sullivan, the conversation with Minister of Energy Abdulaziz bin Salman al Saud and Deputy Secretary of Defense Khalid bin Salman bin Abdulaziz al Saud lasted about two hours, for which the American lawmaker expressed appreciation.

However, he recalled that Saudi Arabia’s statement of March 6 that it would significantly increase production to more than 12 million barrels per day, “significantly aggravated the turmoil in global energy markets at a time when the world was dealing with a crisis for the coronavirus pandemic.”

“States such as Alaska continue to suffer from this turmoil today — tens of thousands of hard-working Americans were fired and independent energy companies were forced to close their stores. Although in recent days, Saudi Arabia has committed itself to reducing oil production and is playing a constructive role in global energy markets, actions speak louder than words. The kingdom must take sustainable, concrete measures to significantly reduce oil production, and this must be done as soon as possible,” said C llivan.

Earlier this week, nearly 50 US congressmen called on Crown Prince of Saudi Arabia, Mohammed bin Salman al Saud, to set an example to other countries and make every effort to stabilize oil prices. The letter stated that “failure to cope with this energy crisis would jeopardize the joint efforts of our (US and Saudi Arabia) countries to cooperate economically and militarily.”

The OPEC + alliance , including Russia and Saudi Arabia, after a month-long hiatus, agreed on a new agreement to reduce oil production. It will be valid for two years from May 1. It is assumed that the total production of 23 countries of the alliance will decrease by 10 million barrels per day from the level of October 2018 in May-June, by 8 million in the second half of the year and then by 6 million.

Also, the head of the Ministry of Energy of the Russian Federation, Alexander Novak, reported that there are countries outside the alliance, given the decrease in oil production in which the total reduction in May-June will be 15 million barrels per day. Among them were mentioned Canada, the USA, Norway, Argentina, Brazil and others.

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