OPEC+ Producers voluntarily cut oil outputs as a precaution to support the stability of the oil market. The White House responded quickly.
Cuts by Saudi Arabia, Iraq, the UAE, Kuwait, Algeria, and Oman from May to the end of the year will total more than 1 million barrels per day.
Russia’s deputy prime minister also said Moscow would extend a voluntary cut of 500,000 bpd until the end of 2023. The UAE, Kuwait, Iraq, Oman, and Algeria said they would voluntarily cut output over the same time period.
- The UAE said it would cut production by 144,000 bpd,
- Kuwait announced a cut of 128,000 bpd while
- Iraq said it would cut output by 211,000 bpd and
- Oman announced a cut of 40,000 bpd.
- Algeria said it would cut its output by 48,000 bpd.
- It seems like yesterday when we were energy independent under Donald Trump.
Allegedly, Riyadh was annoyed that Biden won’t refill the SPR. Does anyone think Biden ever planned to refill it? He only knows how to drain it.
So OPEC cuts must be due to overwhelming demand right? Since we’re not in a recession and global demand isn’t falling off a cliff right??
— piker (@somniummortus) April 2, 2023
A spokesperson for the National Security Councii at the White House has responded to OPEC+’s decision. They said it’s not advisable “given market uncertainty.” The White House “will continue to work with all producers and consumers to ensure energy markets support economic growth and lower prices for American consumers.”
Helima Croft, head of commodity strategy at RBC Capital Markets, said Saudi Arabia was staking out an economic strategy independent of the US after relations deteriorated between Riyadh and D.C.
“It’s a Saudi-first policy. They’re making new friends, as we saw with China,” Croft said, referring to a recent Beijing-brokered diplomatic deal between Saudi Arabia and Iran.
The Kingdom was sending a message to the US that “it’s no longer a unipolar world.”
Biden has turned the world against the United States. Remember when Biden and the Democrats accused Donald Trump of doing what he is doing? Biden’s allies are the Europeans. Yet France just made a deal with China to buy LNG with yuan as the currency. They need fuel which was evident when we leveled the failed sanctions.
Let’s not forget that Barack Obama’s people are advising Joe Biden, and Obama said we shouldn’t be any better than anyone else.
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