by Nicolas Loris, The Daily Signal
As the world collectively battles with the coronavirus pandemic, leaders on the world stage also are grappling with how to address the oil price war between Saudi Arabia and Russia.
As prices plummeted, one idea floated is for the US to form an alliance with Saudi Arabia to stabilize prices. Although it’s not clear what such a partnership would look like, government intervention in oil markets isn’t the solution.
Oil prices have fallen 60% since the beginning of the year. Fuel demand is down as factory and business owners temporarily closed their doors in the name of social distancing.
Jet fuel demand could drop by as much as 70% in the second quarter with travel restrictions in place and overall flight demand down significantly.
© 2020 The Heritage Foundation