The cartel of the main oil-producing countries OPEC + will meet today, which includes 13 states, including Saudi Arabia, Kuwait, UAE and Russia. It is assumed, that the meeting will decide on a sharp reduction in oil production - on 1-2 million barrels per day. A number of Western media immediately report, that Russia and Saudi Arabia insist on this. Reductions will be made at the expense of existing production, not for quotas, which some participants in the transaction cannot choose.
The administration of the US president began to make frantic attempts to dissuade and even pressure allies in the Middle East to vote against the cuts.. A significant decline in oil exports will inevitably lead to higher fuel prices at US gas stations. Television agency CNN reports, citing sources in the White House, that the Biden administration describes the prospect of production cuts as a “complete disaster” and warns, that this could be perceived as a "hostile act".
Last year, President Joe Biden began to rapidly lose popularity among Americans., due to the sharp rise in fuel prices. The presidential administration has made several attempts to negotiate with major oil exporters to increase production and supply of raw materials, but almost without success. Then Biden launched a program to print out strategic oil reserves.. As a result, fuel prices in the domestic market fell.. But by October, the limit of oil interventions, defined in 180 million barrels, was almost exhausted.
OPEC+ decision to cut production, if it is taken, would be a disaster for Joe Biden. Less than a month left before the midterm elections, and the Democratic Party's chances of holding a majority, if fuel prices start to rise again in the country, fall sharply.
The planned decision of the G7 countries and the EU to introduce a price ceiling for Russian oil does not contribute to holding the cost of oil futures. experts believe, that Moscow in this case can drastically reduce production and even completely stop exporting hydrocarbons to "unfriendly countries".
Became known, that Deputy Prime Minister of the Russian Federation Alexander Novak will support the decision of OPEC + to reduce production due to the fact, that “Russian oil is already on sale at a big discount”. Financial Times writes, that Saudi Arabia, which has a very tense relationship with Washington, seeks to raise oil prices, to "piss off the US and help Russia". Author:Alexander Grigoriev Photos used:Site Abraxas Petroleum Corporation
