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OPEC Plus to reduce the oil production

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OPEC Plus to reduce the oil production

The Organization of the Oil Producing Countries OPEC Plus last week decided to cut production by 2 million barrels per day. America was opposed to this decision. The move is believed to be creating a gap between the Biden administration and the Saudi royal family. While both have been each other’s trusted allies.

Sources said the White House made a lot of efforts to stop production cuts by OPEC countries. Biden expects the price of US oil to raise again ahead of the midterm elections, while he seeks to limit Russian energy revenues during the Ukraine war. But due to the reduction in the production of OPEC countries, all plans may be eclipsed.

After Biden became president, Washington released a report that named Prince Mohammed bin Salman in the 2018 murder of journalist Jamal Khashoggi. The prince is now the PM of Saudi. His lawyers are arguing in a US court that they are exempt from prosecution in Khashoggi’s death. But the sourness in both countries continues over Khashoggi’s death.

Biden’s top energy envoy Amos Hochstein, along with US National Security Officer Brett McGurk and Yemen’s administration special envoy Tim Lenderking, traveled to Saudi Arabia last month to discuss energy issues, including the OPEC+ decision. Despite this visit, he failed to stop the production cuts. President Joe Biden attempted to do something similar during his visit in July but was unsuccessful. America failed on many other matters.

Saudi Government’s Energy Minister Prince Abdul Aziz said that we are first concerned with the interests of the Kingdom of Saudi Arabia and then the interests of those countries. OPEC and OPEC+ alliance countries have trusted us. He even said that the price cap imposed by the US government on the price of Russian oil is creating uncertainty.

About Vijendra

Vijendra has a master’s degree in Marketing and editor with passion. Exploring economic policies of different economies and analyzing geo-politics policies is of keen interest. In his free time he is a hardcore metal-rock and punk music fanatic.

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