Yesterday we wrote that the price of oil is in a free fall, heading toward $20/barrel (see Oil Heading for $20/Barrel; Price in Freefall; Uncharted Territory?). The reason is, of course, because Saudi Arabia and Russia are pumping as much oil as they can, flooding the world market and causing the price to crash, all in an effort to bankrupt American shale oil companies. Continental Resources’ Chairman Harold Hamm wants the two countries investigated for dumping, perhaps with tariffs on imported oil (see Continental’s Harold Hamm Plans to Fight Saudi/Russia “Dumping”). Another potential solution to the oil price crash would be if the Saudis would scale back their pumping. A group of Republican U.S. Senators have just sent Saudi Crown Prince Mohammed bin Salman a letter asking him, pretty please, to quit pumping so much oil. Will it work?
