The White House has been trying to the last to pressure OPEC+ not to make a cut a month before midterm elections that could send energy and gas prices skyrocketing, complicating Democrats’ efforts to retain control of Congress . However, pressing was unsuccessful.
Saudi Arabia has indeed chosen to side with Russia in pushing for production cuts, turning its back on American allies and reigniting heavy criticism of the White House over Biden’s recent visit to Ryad. “It wasn’t a waste of time,” said National Security Council spokesman John Kirby.
Biden vowed to consult Congress immediately to assess the tools and powers needed to reduce OPEC+’s control over energy prices and opened up on a fresh release of strategic oil reserves to calm prices. Europe is also concerned about the cut in production. According to analysts, the election of OPEC+ is “political and a clear sign of dissatisfaction with the price cap because it is seen as a dangerous precedent.”
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Saudi Arabia
for who have pushed
reduction
“It is on a collision course” with the United States and the West, proclaims itself an ally with Russia, and “is facing not inconsiderable political consequences.” For the
“Opec+
The crucial cut is the biggest since 2020, but in reality it will result in a cut half that announced. In fact, many Member States are producing less than their quotas and are therefore already complying with the new limits without having to resort to production cuts. Equity markets are watching the cartel cut with concern as they fear further geopolitical tensions. European bourses all closed in red.