President Joe Biden has stated that OPEC oil is reliable and that he enjoys good connections with the nations that produce oil in the Middle East. Republicans believe that since we have the ability here at home, we should be generating our own oil rather than relying on others.
Now, the U.S. will be impacted by those others’ decisions, but it is not participating.
According to Aljazeera:
OPEC recently drastically reduced output, which increased petroleum prices and hurt consuming countries. This led to claims that Gulf producers were supporting Russia at the expense of the United States and its Western allies.
Despite not being a member, Russia has had ties to OPEC and, ironically, now hopes to gain from the high oil prices that have so far helped the Kremlin survive the shock of Western sanctions.
The 13-nation OPEC group and its 10 allies, led by Russia, decided to reduce output by two million barrels per day (bpd) beginning in November, according to a statement released by the organization on Wednesday.
In July, President Biden visited the nation in the middle east to try to secure guarantees on oil output, but he was unable to do so.
” The Biden administration, which for months has engaged in diplomatic efforts to dissuade its Middle Eastern allies from cutting oil production, reacted frustrated at the prospect of pump prices increasing further before a key midterm election.” according to Aljazeera.
Given that it will likely increase petrol prices weeks before the November elections, the administration was said to be “panicking” about the potential reduction.
Saudi Arabia’s Foreign Ministry said in a statement on Thursday that “this decision was adopted unanimously by all member states of the OPEC+ group,” refuting U.S. charges that it lowered oil production for political purposes or that it pushed any OPEC members to follow suit.
The U.S. request for the oil reduction decision to be delayed for at least one month “would have had serious economic effects,” the Foreign Ministry noted.
The Biden administration has previously declared that it was “disappointed” in Saudi Arabia’s choice, and it has now come out and said that OPEC has chosen Russia above the United States, Canada, Japan, France, Italy, the United Kingdom, and Germany.
Following Saudi Arabia’s Foreign Ministry’s assertion that the country opted to cut oil production in a “purely economic context” separate from its relations with Russia, a White House official responded sharply to Saudi Arabia on Thursday.
The facts are straightforward, according to John Kirby, the White House coordinator for strategic communications at the National Security Council. “The Saudi Foreign Ministry can try to spin or deflect, but the facts are simple,” he said.
Despite alleged requests from the U.S. to delay the reduction for at least one month, Kirby reiterated that the U.S. is “re-evaluating” its relationship with Saudi Arabia in the wake of the OPEC nation’s decision to cut oil production by 2 million barrels per day.
Additionally, he asserted that the U.S. “OPEC nations communicated to us privately that they also disagreed with the Saudi decision, but felt coerced to support Saudi’s direction,”
More on this story via The Republic Brief:
Forbes assesses the situation:
“While the actual drop will be about 1.2 million barrels a day due to the Saudi-led cartel’s ongoing failure to hit production targets, the reduction is still a heavy blow to President Joe Biden’s efforts to rein in energy prices. Even if executed at a 60% level, the OPEC-plus cuts will push inventory draws into bullish territory. That puts benchmark Brent crude on the path to reach 4100 a barrel before the end of the year. The assault on oil markets comes when the global economy is already teetering on the cusp of recession and right as the northern hemisphere heads into the cold winter months.”… CONTINUE READING…