Trump Administration Might Resort to Sanctions to End Saudi Arabia-Russia Oil War: Report

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The U.S. is considering imposing new sanctions on Russia in an effort to end its oil war with Saudi Arabia, which has sent crude prices spiraling to historic lows.

According to a report published Thursday in The Wall Street Journal, President Donald Trump’s administration is mulling more direct intervention to bring Moscow and Riyadh back to the table, under pressure from American oil companies to do so amid the lowest U.S. oil prices in 18 years.

U.S. oil producers are being punished by the sharp drop in prices. The crisis stems from Russian and Saudi concerns over the U.S. shale industry, which in recent years has transformed the market, making America self-sufficient in oil and the world’s top producer.

The coronavirus economic slowdown exacerbated a global oversupply of oil, as demand fell around the world, particularly in Asia. In response, OPEC — led by the Saudis — called for oil production cuts to boost prices.