international
U.S. Intervention in the Saudi-Russian Oil Price War
Mar 25, 2020 at 02:12 AM

The Quick Facts

  • Saudi Arabia and Russia are locked in an oil price war that has dropped the price of crude oil from about $45/barrel to about $23/barrel. With the American shale oil industry in peril, many now look to the United States to intervene.
  • On March 6th, Russia refused to comply with an OPEC+ decision to limit the supply of oil in response to falling Chinese demand. In response, Saudi Arabia triggered a drop in oil prices and both countries drastically increased production.
  • The shock to oil prices, along with coronavirus fears, contributed significantly to this month's stock market volatility. The start of the conflict coincided with a 2,000-point drop in the Dow Jones Industrial Average.
  • The United States became the #1 oil producer in the world in late 2019, largely thanks to an expansion in shale oil production. Since then, oil prices have fallen by about 50%, threatening shale companies' ability to survive.

Food For Thought

What values should drive America's response, or lack thereof, to this crisis?

Share this Topic

Vote to see how others feel.
  • agree
  • disagree
  • undecided

Share this page

Vote to see how others feel.
  • agree
  • disagree
  • undecided

Share this page

Vote to see how others feel.
  • agree
  • disagree
  • undecided

Share this page

Vote to see how others feel.
  • agree
  • disagree
  • undecided

Share this page