OPEC+ Russia Agree Deep Oil Supply Cuts – White House Worried OPEC Cuts Will Mean ‘Total Disaster’ For US

Posted on : 05/10/2022 By
OPEC+ Russia Agree Deep Oil Supply Cuts – White House Worried OPEC Cuts Will Mean ‘Total Disaster’ For US
Global Economy Geopolitics Sovereign Info Network 

OPEC+ decided on a production cut of 2 million barrels a day starting November. The psycho combo behind the senile teleprompter reading puppet is livid. The reduction could spur a massive recovery in global prices for crude.

Key ministers of OPEC+, which includes Saudi Arabia and Russia, known as the joint ministerial monitoring committee, have agreed on production cuts of up to two million barrels per day for the oil-producing nations, Reuters reported on Wednesday, citing sources at the organization.

The potential reduction is expected to significantly curb supply in an already tight market. It could send global prices for crude, which have dropped to about $90 from $120 three months ago, surging again.

Earlier this week, various media outlets reported that the cartel was mulling daily output curbs of between 500,000 to one million barrels at a meeting in Vienna on Wednesday.

A reduction of two million barrels per day by the world’s major oil producers and exporters would mark the biggest production cut since pandemic lockdowns first destroyed demand across the globe.

Meanwhile, Washington was trying hard to prevent a production cut by OPEC+ ahead of midterm elections in the US. 

The White House mobilized all available resources, with officials “having a spasm and panicking,” an unnamed senior official told CNN, describing these latest efforts as “taking the gloves off.” Some of the talking points drafted by the US administration suggested the potential cut would be viewed as “a hostile act” and a “total disaster.”

Arriving at the meeting, Suhail Al Mazrouei, the energy minister of the United Arab Emirates (UAE), said that OPEC+ is a “technical organization,” when asked whether US-UAE relations risked being damaged because of the proposal.

Most officials from OPEC+ member states said any reduction would be a “technical not political decision,” and cited a “risk of recession” for the cuts as they entered the OPEC headquarters in Vienna, RT reports.

White House Worried OPEC Production Cut Could Mean ‘Total Disaster’ for US – Reports

The United States was concerned that OPEC’s potential decision to cut oil production may cause major issues for the country and could even be seen as a hostile act, CNN reported citing a White House document.
 
OPEC-plus states convened on Wednesday to consider the possibility of scaling back oil production of up to 1-2 million barrels per day or more due to a declining demand caused by slowing economic activities around the world, according to media reports.
 
The report said on Tuesday that the White House is warning that much will be at stake for the United States at OPEC’s meeting and a decision to cut oil production would be a “total disaster” for the country.
 
The Biden administration assembled its most high-level energy, economic and foreign policy officials and tasked them to lobby Middle East allies, including Saudi Arabia, the United Arab Emirates, and Kuwait, to vote against cutting oil production.
 
The United States, in an effort to persuade its OPEC allies, is proposing that it would buyback up to 200 million barrels of oil from its OPEC partners that would be used to refill the US Strategic Petroleum Reserve, which President Joe Biden has been using to help lower oil prices. But that’s now all gone after Opec + Russia decision.

Leave a Reply

WP Twitter Auto Publish Powered By : XYZScripts.com