U.S. energy secretary hopeful Saudi, Russia to end oil row this week

U.S. Energy Secretary Dan Brouillette said on Monday that after speaking with the energy ministers of Saudi Arabia and Russia he hopes the countries will end their war over market share this week.

“They are going to get together later this week and hopefully end this disagreement that started perhaps two or three weeks ago,” Brouillette told Fox Business Network.

Oil prices have dropped as demand has crumbled on global economic shutdowns during the coronavirus outbreak, and as Saudi Arabia and Russia have pumped oil flat out in a war for market share.

Brouillette said the United States is encouraging Saudi Arabia, which is the chair of the G20 this year, to convene a G20 energy ministerial meeting toward the end of the week “and I expect that that’s going to happen.”

Brouillette spoke to Saudi counterpart Prince Abdulaziz bin Salman at the weekend, telling him the Saudi-Russian battle for market share in the global oil has “major implications” for the United States and the world, the U.S. Energy Department said.

The oil price drop means many highly leveraged U.S. shale drillers risk bankruptcies and oil workers face layoffs.

“Some saw the actions to increase production … as a direct attack on the U.S. shale industry,” Brouillette told Fox. He also said U.S. energy industry will have to adjust accordingly to reduced demand from the coronavirus outbreak.

The U.S. and Saudi energy officials agreed to continue talks over global oil markets through a G20 meeting in the “near future,” the department said in a readout of the call.
Source: Reuters (Reporting by Timothy Gardner, additional reporting by Susan Heavey Editing by David Goodman, Steve Orlofsky and David Gregorio)