what is “reason” from the Saudi side and “dearness” the United States on today’s decision “we” Let’s analyze each point one by one.
Saudi reason:
Abdulaziz Bin Salman, Saudi Energy Minister indicating OPEC’s largest production cuts since 2020 in response to rising global interest rates as well as stimulating a recovery in oil prices to cope with the drop in demand. as a result of the weak fundamentals of the global economy together with confirming that The decision was also a consensus among the Member States.
US anger:
The US and the West are making efforts. “Limiting the selling price of oil” of Russia in the hope of forcing the Kremlin to pay as much as possible for the war in Ukraine For this reason, the decision “Reduce productivity” So, this is the way to open the way for “Russia” escape the boycott trap and be able to sell oil at a higher price Making such a decision is no different from Choosing to side with Russia instead of “USA”
In addition, the conditions stated in November. This is the time when Europe and the United States are into winter and need to be used “Energy” (oil and natural gas) in higher amounts than usual to produce electricity to heat the home equal to creating a burden in terms of “cost” to the nations of the West inevitably And this matter will be even worse. “Problem of inflation” which continues to skyrocket even more
in addition “Terms and Conditions” In terms of the reduction in production capacity, it is also President Joe Biden It can also question the intention “Saudi Arabia” it may be aimed at the internal politics of the United States because it allows “by accident” Too bad that This period is close to “Mid-term elections” (Nov. 8) that President Joe Biden, who is facing the decline caused by various problems facing the United States. especially about “inflation” who are trying hard to get their popularity back
revenge USA:
“Oil prices are still too high. And we need to continue working to keep prices down,” President Joe Biden said.
In the last six months, the United States has released Strategic Petroleum Reserve (SPR) into the market continuously To hope to intervene in the rising oil prices from the Ukrainian war poisoning. As a result, oil prices have started to fall for almost 3 consecutive months.
For this reason, when “OPEC Plus” announced a reduction in production The White House announced it and extended the period for SPR venting to further balance the world oil market It will begin buying crude oil back into the SPR stockpile when the price of oil has fallen to $67-72 per barrel
The United States has the most strategic oil reserves in the world. with a volume of up to 400 million barrels!
Meanwhile, the hawk wing in Congress Foreigners express their dissatisfaction with the actions of Saudi Arabia this time. Along with demanding the US government Cut off all security support including tan “Sell weapons” to the Riyadh side
It also called for a push.Draft Law on No Oil Production and Export Cartels ct. or NOPEC which is a law that will lead to the removal of protections for oil producing countries; or “OPEC” against the antitrust laws of the United States And as a result, can sue OPEC or even OPEC Plus member states. If the number of production quotas is limited or stop exports to make the price of oil in the market skyrocket In response to the actions of Saudi Arabia and OPEC Plus this time.
What will happen to the conflict? :
Western analysts expect a deterioration in relations between the United States and Saudi Arabia. This could put security in the Middle East at risk as a result of the US. It can pay less attention to care In addition, in reality, the drop in oil production may not be as high as 2 million barrels per day because there are currently many OPEC member countries without production ceilings. While Iraq has shown that it is ready to produce more than the quota received.
However, on the contrary Analysts from China are looking at what happened. It reinforces intention “Prince Mohammed bin Salman” The Crown Prince of the Kingdom of Saudi Arabia who wants to bring Saudi Arabia into a new era with its own identity and independent from the United States more on the world stage Having previously shown interest in joining the group BRICS with Russia and China as the mainstays.
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