U.S. oil state senators to talk crude markets with Saudi officials Saturday: source

[Judi Lynn]

Source: Reuters

Posted on April 7, 2020
By Timothy Gardner



FILE PHOTO: U.S. President Trump hosts "Made in America Product Showcase" at the White House in Washington

WASHINGTON (Reuters) – Republican U.S. senators who have introduced a bill that would remove U.S. defense systems and troops in Saudi Arabia unless it cuts oil output will hold a call with the kingdom’s officials on Saturday, a source familiar with the planning said on Tuesday.

Senators Kevin Cramer and Dan Sullivan will hold a call with the officials two days after a scheduled OPEC+ meeting in which Saudi Arabia and Russia are expected to agree an output cut. The two countries have been pumping oil flat out beginning last month in a race for market share.

The senators’ bill would remove U.S. troops, Patriot missiles and THAAD defense systems from the kingdom and put them elsewhere in the Middle East unless it cuts oil output.

. . .

Analysts at ClearView Energy Partners said in a note to clients that the senators would likely reiterate their threats to withhold military support.


Read more: https://www.metro.us/u-s-oil-state-senators/

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(Doesn't the photo above make it appear Trump is having a garage sale at the White House?)

[James48]

1. Absolutely disgusting

Why are our soldiers even there?

No American should be there , in harms way, to die for oil.

Bring them all home now.

[FiveGoodMen]

8. "in harms way, to die for oil"

Hasn't that been the main use of our armed forces for quite a while now?

[roamer65]

2. I hope the Saudis keep flooding the markets with oil.

That will turn TX blue real FAST.

[beachbumbob]

3. Imagine if these were democratic senators and Obama seeking to rise gas prices on americans?

[gab13by13]

4. Oh dear,

a manage et trois, a lover's quarrel. Russia and SA want the US to be a part of cutting back oil production and Trump has no way to do it. Where oh where will Trump move those weapons to, Turkey? Trump does have a tower in Turkey that could use some military protection.

Pretty soon all of the oil tank reserves and oil tankers will be full of oil and there will be no place to put the oil. What happened to the invisible hand of the market?

[ProfessorGAC]

5. They're Going To Cut Anyway

Demand is down 30%, or around 28 million barrels a day.
There's only so much storage space.
Every week, at current rates, they are generating 3 excess days of supply.
As storage capacity gets critical, they'll slow way down, whether they want to or not, because compete shut down and restart of pumping & refining is way more expensive than slowing down.
With 10 days of excess supply already out there, excluding strategic reserves, they really have no short term leverage on price, absent idiocy in the commodity markets.
So, these senators are not only acting inappropriately, but they're tilting at windmills.

[mpcamb]

6. Sounds like some Republican Senators's oil stocks are in the toilet.

[machoneman]

7. Yes and I do hope they tank further, leading to their election loss.

Gotta love this Republiscum move. This put Trumpy in a damned if you do, damned fo you don't position. Raise gas prices on Americans or piss off his money men in SA. Get Putin's prices up and piss off those same SA money men.

Good God, Trumpy can't win here! Loser-loser-loser!

Hah!

[Xolodno]

9. The only reason Russia and SA will cut....

...because they are running out of places for storage. They'll cut alright, but the price is going to be low due to low demand. Plus a lot of US oil extractors are already going belly up.

Plus Russia is going to want some concessions from the USA...particularly in allowing them to complete pipelines to Europe.