AFP
OPEC + angers the United States over deep cuts in oil production
Saudi Arabia, Russia and other major oil producers on Wednesday agreed on deep production cuts to raise crude oil prices, a move by the US as a concession to Moscow that would further damage the world economy. At a meeting in Vienna, the 13-nation OPEC cartel, led by Riyadh and 10 of its allies, agreed to cut production by 2 million barrels a day since November, the group said in a statement. a declaration. It is the biggest cut in 2020 since the peak of the Covid pandemic, raising fears that it could drive oil prices up at a time when countries are already dealing with rising oil inflation. energy and fuels. Saudi Energy Minister Prince Abdulaziz bin Salman defended the move at a press conference following OPEC + ‘s first face-to-face meeting since March 2020, saying the cartel’s priority was “maintaining a sustainable oil market.” But the decision prompted immediate reproach. From US President Joe Biden, who made a controversial visit to Saudi Arabia in July under pressure as Americans grapple with rising gas station prices. Timing is also bad for Biden’s political agenda as he approaches the US midterm elections next month. “It is clear that OPEC + is engaging with Russia with today’s announcement,” White House press secretary Karine Jean-Pierre told Air Force One. National Security Advisor Jake Sullivan and Chief Economic Advisor Brian Deez said in a statement that Biden was “disappointed with OPEC + ‘s shortsighted decision.” Western allies, led by the US, have attempted to isolate the Russian economy, which is heavily dependent on energy exports, in retaliation for the invasion of Ukraine. – Rising oil prices – OPEC + moved to cut production as oil prices hit $ 90 a barrel in recent months due to concerns for the global economy following the Russian invasion of Ukraine earlier this year. fell relative to the international benchmark Brent, North Sea crude rose $ 93.43 after Wednesday’s announcement. Oil production cuts could tighten sanctions on Russia ahead of an EU embargo on most of its crude exports by the end of the year, and the wealthy Group of Seven democracies could impose a ceiling on oil prices. the country’s oil. Russian Deputy Prime Minister Alexander Novak, who is subject to US sanctions and attended the OPEC + meeting, said the maximum price would have a “detrimental effect” on the global oil sector. He warned that Russian companies “will not supply oil to countries” that offer such a limit. “There is a reason Russia is ready to abandon the OPEC cuts: because they don’t know if they will find someone to buy that oil,” said Patrick Poyne, president of the oil giant. French Total Energies, in an interview in London. Told at the oil industry conference. , Collectively & nbsp; Known as OPEC +, the coalition slashed production by around 10 million barrels per day (bpd) in April 2020 to reverse the sharp drop in crude oil prices due to the Covid blockade. OPEC + began increasing production last year after a market correction. This year, production has returned to pre-pandemic levels, but only on paper as some members have struggled to reach their quotas. Last month the group accepted a small token cut of 100,000 bpd since October, the first time in more than a year. Consumer nations have been pushing for months for OPEC + to open the tap more widely to cut prices, but the group has again ignored them. Biden visited Saudi Arabia in July to convince the kingdom to loosen the tap on production. Biden met Crown Prince Mohammed bin Salman during his visit, despite the fact that he promised to make Riyadh a “pariah” after the 2018 murder of journalist Jamal Khashoggi. While the cuts were not welcomed by the United States, many OPEC + countries struggled to meet their quotas in the first place. The next OPEC ministerial meeting will be held on 4 December. In recent months, the cartel and its allies have met monthly online. burs-jaza /