American shale oil producers have started an aggressive lobbying campaign for sanctions against Saudi Arabia and Russia if these countries do not reduce their production.
This was reported by The Financial Times.
U.S. oil shale companies have turned to former U.S. Energy Secretary Rick Perry for help. Among the initiatives of oil workers are blocking the supply of Saudi oil to the largest U.S. refinery Motiva in Port Arthur in the south of the United States owned by Saudi Aramco; introduction of duties on imported oil; cancellation of the regulatory act, which in some cases makes the transportation of oil on foreign tankers more profitable.
Manufacturers propose to impose new sanctions against the Russian fuel and energy sector or, otherwise, to repeal existing sanctions if Moscow cooperates with the US. The head of Continental Resources Harald Hamm urged the authorities to investigate whether Saudi Arabia and Russia have manipulated market prices.
Today President Donald Trump plans to hold a meeting with heads of oil companies. Earlier Trump talked to Putin about coronavirus and oil.
According to the Financial Times, most shale oil producers are unprofitable at prices below $50 per barrel. While the oil price has reached a 17-year low of less than $27 per barrel. Futures on WTI have fallen by 5% by this time in New York to $24.04 per barrel.“Pandemics last for years” – experts no longer bet on a quick economic recovery