UPDATE 2-Trump says he will enter Saudi-Russia oil fray at appropriate time

(Adds call between U.S. senators and Saudi envoy, details on
oil markets)
By Alexandra Alper and Timothy Gardner
WASHINGTON, March 19 (Reuters) - U.S. President Donald Trump
on Thursday said he would get involved in the oil price war
between Saudi Arabia and Russia at the appropriate time, saying
low gasoline prices were good for U.S. consumers even as they
were hurting the industry.
Saudi Arabia and Russia have been fighting over oil market
share after their three-year agreement to hold back production
collapsed this month. Their pumping of crude oil flat out during
a time of severely reduced global demand due to the spread of
the coronavirus has pushed crude prices to near 20-year lows
this week. O/R
"We are trying to find some kind of a medium ground," Trump
told reporters at a White House news conference, adding that he
had spoken to several people about the dispute.
"It's very devastating to Russia because when you look at
it, their whole economy is based on that and we have the lowest
oil prices in decades so it's very devastating to Russia. I
would say it is very bad for Saudi Arabia but they're in a
fight, they're in a fight on price, they're in a fight on
output. At the appropriate time I'll get involved," he said.
Russia's economy is more diverse than Saudi Arabia's and
less dependent on oil than the kingdom's.
The low oil prices are devastating to U.S. crude producers
who have higher costs than their counterparts in Saudi Arabia
and Russia and are likely to spur consolidation in the industry.
The Trump administration is considering a diplomatic push to
get Saudi Arabia to close its taps and using the threat of
sanctions on Russia to force them to reduce output, the Wall
Street Journal reported, quoting unidentified sources.
The United States already has placed sanctions on Russia's
Nord Stream 2 natural gas pipeline to Germany and a unit of
state oil company Rosneft for its marketing of oil in Venezuela.
The sanctions on the pipeline halted the project shortly before
its completion.
Some U.S. lawmakers have said that Russia and Saudi Arabia
are deliberately targeting the U.S. shale oil industry after the
Trump administration pursued a policy of "energy dominance" to
export oil and gas to Europe and Asia.
Thanks to a shale boom, the United States has become the
world's biggest oil producer, overtaking Saudi Arabia and
Russia.
Nine Republican senators, including Kevin Cramer of
oil-producing North Dakota who advised Trump on energy in his
2016 campaign, had a call on Wednesday with Saudi Ambassador to
the United States Princess Reema bint Bandar bin Sultan, hoping
to convince the kingdom to stop flooding global oil markets.

Trump talked about oil markets with Saudi's Crown Prince
Mohammed bin Salman in a call on March 9. In addition, the U.S.
ambassador to Saudi Arabia, John Abizaid, spoke with the Saudi
energy minister last Thursday about oil markets, the State
Department said. There have been few details about those
conversations.