President Trump discussed spiraling energy markets with Saudi Arabian Crown Prince Mohammed bin Salman on Monday, according to the White House, amid growing concern of a global economic slowdown.
The telephone call was made on the same day that Trump blamed devastating market losses on Saudi Arabia and Russia wrangling over oil supply.
The criticism will raise questions about whether Trump’s close relationship with Salman — the president’s first overseas trip was to Riyadh, Saudi Arabia, for example — can survive crashing oil prices.
Prices rose about 8% on Tuesday after plunging a day earlier on news that Saudi Arabia, the world’s biggest oil exporter, was planning to increase production.
“Yesterday, President Donald J. Trump spoke with Crown Prince Mohammad Bin Salman of the Kingdom of Saudi Arabia,” said White House spokesman Judd Deere. “The president and the crown prince discussed global energy markets and other critical regional and bilateral issues.”
Saudi Arabia and Russia are arguing over the price and flow of oil. That, and the Fake News, is the reason for the market drop!
— Donald J. Trump (@realDonaldTrump) March 9, 2020
The White House offered no further details.
Saudi Arabia announced on Tuesday that its state-run oil giant, Saudi Aramco, would increase production to record levels in April. It followed a threat to ramp up production made after Russia said it would not cooperate on cutting output.
Riyadh wanted OPEC nations to reduce production to keep prices high as energy use decreases across Asia because of the coronavirus. However, Russia, which has cooperated with OPEC for the past three years, opted not to go along with the plan, triggering a price war with Saudi Arabia.
Good for the consumer, gasoline prices coming down!
— Donald J. Trump (@realDonaldTrump) March 9, 2020
The lower oil prices come as there’s less demand for air travel amid the spread of the new coronavirus around the world, and the decline in overall demand will also push down gasoline prices at the pump for Americans. On average, a gallon of unleaded is retailing for $2.37, compared with $2.43 a month ago, according to AAA.
