GOP senators ask Saudis to stabilize oil market

by Rachel Frazin - 03/17/20 11:17 AM ET

A group of 13 Republican senators wrote a letter to Saudi Crown Prince Mohammed bin Salman on Monday asking that the kingdom stop its recent decision to ramp up oil production and flood the global market.

“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 senators wrote.

“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.”

“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,” they added.

The Monday letter was signed by Sens. Dan Sullivan (R-Alaska), Kevin Cramer (R-N.D.), Lisa Murkowski (R-Alaska), Ron Johnson (R-Wis.), John Cornyn (R-Texas), John Kennedy (R-La.), John Hoeven (R-N.D.), Bill Cassidy (R-La.), John Barrasso (R-Wyo.), Tom Cotton (R-Ark.), James Lankford (R-Okla.), Ted Cruz (R-Texas) and James Inhofe (R-Okla.).

Oil prices have sharply declined following the Saudi announcement that it would increase its production. The move follows Russia’s decision to decline to join the member nations of the Organization of the Petroleum Exporting Countries in agreeing to cut production in response to the slowdown in demand due to the effects of the coronavirus.

President Trump also spoke with the crown prince last week about global energy markets, according to the White House.

Since then, the president has announced that the government would purchase “large quantities” of crude oil for storage in the Strategic Petroleum Reserve, giving a boost to an industry that has been hit by the price plunge.

The senators are slated to meet with Saudi Ambassador to the U.S. Reema bint Bandar Al Saud this week.