Vienna: OPEC and its Russian-led allies on Wednesday agreed to deep cuts in oil production to boost oil prices, angering the United States, which warned it would hurt countries suffering from high energy prices. His OPEC cartel of 13 countries and its 10 Russian-led allies agreed at a meeting in Vienna to cut 2 million barrels per day from November, the group said. said in a statement.
This is the biggest cut since the height of the 2020 COVID pandemic and has raised fears that oil prices will surge at a time when countries are already facing spikes in energy-fueled inflation. I’m here. Saudi Arabia’s energy minister, Prince Abdulaziz bin Salman, said the cartel’s priority was “maintaining sustainable oil markets” after their first face-to-face meeting since March 2020.
But the move comes after Joe made a controversial trip to Saudi Arabia in July as part of a lobbying campaign for more oil production as Americans face higher prices at fuel stations.・It was immediately denounced by President Biden.
“The president is disappointed by OPEC+’s short-sighted decision,” said National Security Advisor Jake Sullivan and Chief Economic Adviser Brian Dees in a statement. “The global economy is grappling with the continuing negative effects” of Russia’s attack on Ukraine, he said.
OPEC+ has decided to cut production after oil prices surged to $140 a barrel in the wake of Russia’s invasion of Ukraine earlier this year, before falling below $90 a barrel in recent months on concerns about the global economy. International benchmark North Sea Brent crude rose almost 2% to $93.41 after Wednesday’s announcement.
Cuts in oil production could boost sanctioned Russia before the European Union bans most of its oil exports later this year, and wealthy democracies in the G7 Russia’s Deputy Prime Minister Aleksandr Novak, who is under US sanctions and attended an OPEC+ meeting, said the price cap would have a “detrimental effect” on the global oil sector. said it would give He warned that Russian companies would “not supply oil to those countries” that would introduce such caps.
Collectively known as OPEC+, the alliance slashed production by about 10 million barrels per day (bpd) in April 2020, reversing the massive drop in oil prices caused by the COVID lockdowns. I was. OPEC+ started ramping up production last year after the market improved. Output this year has returned to pre-pandemic levels but has remained on paper as some members struggle to meet their quotas. Agreed to small, symbolic cuts. This is his first in over a year. Consumer countries have been calling for months for OPEC+ to open the tap wider to bring down prices, but the group has again ignored them.
“Knowing that Russia wants to cut production, we see the move as a further escalation of geopolitical tensions between Moscow and the West,” Swissquote bank analyst Ipek Ozkardeskaya said ahead of the meeting. It can be recognized,” he said. Biden said he traveled to Saudi Arabia in July to persuade the kingdom to loosen its production capacity. On the visit, Mr Biden met Crown Prince Mohammed bin Salman, despite his promises to make Riyadh a “pariah” after journalist Jamal Khashoggi was killed in 2018.
The cuts were not welcomed by the US, but some OPEC+ members are struggling to meet their quotas in the first place.The next OPEC ministerial meeting is scheduled for December 4. In recent months, the cartel and its partners have held monthly meetings online. – AFP