U.S. oilmen stand up for sanctions against Saudi Arabia and Russia

American shale oil producers have launched a campaign to persuade the White House to impose new sanctions against Russia and Saudi Arabia and force them to reduce their oil production.

On April 1, the first major shale oil producer, Whiting Petroleum, went bankrupt due to the crisis in the US oil market. At the same time, according to the firm itself, it began a financial restructuring process due to the decline in oil and gas prices “in the light of uncertainty” due to disputes between Saudi Arabia and Russia. Whiting Petroleum has over $585 mn in its accounts and will continue to operate as usual. However, the company’s debt exceeds $2.2bn. After the bankruptcy was declared, its shares fell by 45% to $0.39 per share.

Oil prices collapsed on March 9, after Russia and the OPEC+ countries did not agree to cut production on March 6. As a result, Saudi Arabia said it was going to increase production to 12 mn barrels per day and bring its reserves to the market. With coronavirus spreading around the world, the demand for oil is decreasing and the markets are in surplus. As a result, prices for this raw material have fallen by a record 30%.