If you saw the dramatic decline in oil prices and overall market volatility earlier this week, there is more than just the coronavirus fears to blame. Look to the feud between Saudi Arabia and Russia for starters.

The Heritage Foundation has this:

Russia and Saudi Arabia spark unprecedented oil war amid coronavirus threats – The failed agreement between Russia and Saudi Arabia indicates that we’re in the midst of a price war. Saudi Arabia has been discounting its sales at unprecedented levels to capture as much market share as possible in an effort to really stick it to Russia for failing to agree to production cuts. The supply increases from Russia and Saudi Arabia in conjunction with the demand-side reduction from coronavirus has put prices into a tailspin. While this will be challenging for American producers, let’s not also forget it’s a stimulus for consumers. Drivers and energy-consuming businesses will enjoy additional relief at the pump.

 

The Daily Caller notes "that Moscow is worried that the U.S. will use shale oil to take advantage if Saudi Arabia ease off production." Meanwhile, Bryan Preston has a piece at PJmedia.com with this headline: Putin Is Meddling in the 2020 Election—by Attacking American Oil Producers

Is Vladimir Putin playing chicken with American shale oil producers? That certainly appears to be the case. I spoke with Heritage Foundation policy expert Nick Loris. Here's the full audio of our conversation: