G7 Calls on Oil-Producing Countries to Promote Stability

(Bloomberg) --

Group of Seven finance chiefs urged oil-producing nations to support international efforts to stabilize world markets rocked by the coronavirus crisis.

The call comes as oil prices are battered both by the collapse in demand caused by shutdowns to combat the virus and a brutal fight for market share that has seen leading exporters ramp up production.

“We call on oil-producing countries to support international efforts to promote global economic stability,” the institution said in a statement.

Crude prices remain near the lowest since 2003, losing about half their value this month because of the sudden halt in transportation and a flood of surplus supply.

Saudi Arabia and Russia are the leading antagonists in a price war following a dispute earlier this month over how to deal with the demand slump shattered their three-year alliance of market management.

The G7’s request follows a range of attempts at mediation that so far have failed to yield results. While oil prices in the $20s offer consumers some solace as the economy freezes up, they also threaten the viability of producers such as America’s shale drillers.

President Donald Trump said last week he might intervene in the clash between Riyadh and Moscow, while U.S. Energy Secretary Dan Brouillette said on Tuesday that one potential option could be an alliance between the U.S. and the kingdom. The head of the body that regulates Texas’ oil industry has even discussed cooperation with the chief of the OPEC cartel.

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