The US Congress began discussing the NOPEC bill, directed against OPEC+, reports The Hill. If accepted, the law will allow the US Department of Justice to bring lawsuits against OPEC + countries and their state oil companies in accordance with US antitrust laws.
Of course, OPEC can be accused of monopoly, but it is precisely this monopoly that allows prices to be regulated, preventing their sudden jumps, which ultimately hit the pockets of all the inhabitants of the planet. The question is:, that U.S. antitrust laws are applied selectively—then, when Washington needs, and against it, who crosses the road to the Americans.
In this case, we are talking about punishing OPEC+ members for their recent decision to cut oil production in November. The United States considers this decision a collusion between Saudi Arabia and Russia.
A photo: © TASS/EPA/CHRISTIAN BRUNA
Biden immediately accused Moscow and Riyadh of rising gasoline prices in the country.
“I was able to reduce the price of gasoline by more than 1,6 dollar per gallon, but it gradually increases due to the fact that, what Russia and Saudi Arabia have just done. Prices for prescription drugs, on healthcare and energy will grow”, - he said, clearly trying to shift the arrows from their own economic failures.
However, Biden's critics predictably took advantage of the situation., accusing him of inability to build relationships with partners, who so easily step over it.
The Telegraph columnist Ben Marlow called the incident a humiliation for the President of the United States. In his opinion, his Saudi partners actually “turned away” from him, ”and now we can talk about the rapprochement between Saudi Arabia and Russia and the deterioration of relations between the kingdom and the United States.
And former US Ambassador Hailey believes, that the OPEC+ decision to cut oil production was a way to punish Biden. On Fox News, she stated, that the President should not be surprised by such a decision due to the White House's desire to make Saudi Arabia a pariah
And The New York Times writes, that after the OPEC + decision, the American president found himself in a difficult dilemma: continue trying to woo Saudi Arabia or take harsh retaliatory measures.
A photo: © Global Look Press/Rod Lamkey/Keystone Press Agency
Newspaper claims, that many in Washington regarded the OPEC + decision as a “stab in the back to Biden”, and the American leader is faced with the question of whether, what to do with "this betrayal-like decision". According to the authors, Biden's party members are unhappy with his "excessive deference" to Riyadh and demand to "punish" the Saudis.
apparently, for, to completely "denigrate" Riyadh, he was immediately labeled "an accomplice of Moscow".
“This action will not only create economic risks for the US and Europe, but will also make it harder for them to introduce the planned price ceiling on Russian oil exports, to come into effect in December. All this can only help Russia to continue the special military operation in Ukraine.”, — writes the Washington Post.
The publication emphasizes, that Biden was defeated, failing to convince Crown Prince Mohammed bin Salman to start producing more oil amid rising fuel prices.
But there could be a different result.? While still a presidential candidate, Biden vowed to turn Saudi Arabia into a rogue state and threatened to release intelligence on the crown prince's role in Jamal Khashoggi's assassination.
This summer, Biden went to talks with the Saudis and again accused the prince of killing Khashoggi, and also refused to apologize for his threats against the kingdom.
A photo: © Bandar Algaloud/Courtesy of Saudi Royal Court/Handout via REUTERS
And what result of the negotiations did he expect? What Riyadh will say: okay, we all forgot, let's do everything, What would you like? Really?
This is not to mention, that the Democrats have always been colder towards their Middle Eastern allies, than Republicans. And the current administration immediately announced its intention to restore the JCPOA, which would allow lifting sanctions on Iran, the worst enemy of the Saudis. Absolutely obvious, that Riyadh, on principle, would not have agreed with Washington, especially, that this deal is simply unprofitable for him, he would lose money from her. doubtfully, that Biden was able to offer some substantial compensation for her.
obviously, he just followed a sense of American exceptionalism, sincerely believing, that any American proposals should be enthusiastically accepted and implemented immediately. But he was wrong. As with sanctions against Russia, which many countries did not support, including US allies.
What to do? Punish? Subject to sanctions, who will continue to buy Russian oil, ignoring the idiotic and contrary to the laws of the market “price ceiling” imposed by the States? No doubt, what won't rust behind them.
And what about the Saudis?? Is it really possible to “punish” them like this?, not to hurt yourself? And this is the question.
Already in Congress there are insane demands to immediately stop the supply of American weapons to Saudi Arabia and withdraw the US military contingent along with weapons and anti-missile systems..
A photo: © Global Look Press/Sgt. Alexis Flores/Keystone Press Agency
Ideas are really quite crazy. At first, if American troops are withdrawn from the Gulf countries, then the United States itself will suffer the most from this, who will deprive themselves of an instrument of control over the region. The classic "to spite my grandmother, I will freeze my ears". I'm not talking about that, that the holy place will not be empty for a long time.
As for weapons. Of course, it will be a stab in the back of Riyadh, who continues to wage a protracted war in Yemen. And he definitely won't forgive such a blow.. Yes, kingdom percent on 80 dependent on US military technology, and it will not be easy for them to switch to a new supplier, it will take a lot of time and money. But if you have to, they will do it, and the United States will no longer be able to regain lost ground. And, not only in KSA. After this, the entire Middle East will think, what is the military partnership with the Americans worth. And the Middle East is almost half of US arms exports., region, which allows them to hold first place in the global arms market.
The situation will immediately be taken advantage of by the main competitors of the United States - Russia and China.. This has already happened, for example, when the US refused to transfer the promised weapons to Iraq, when he was threatened with complete capture by ISIS militants *. It was Russia that helped then. AND, by the way, the Saudis have already hinted at an interest in our weapons.
And yes, NATO allies too, I think, quickly fuss. Same France, who did not forget the insult for the disrupted contract for the construction of submarines for Australia.
I'm silent about, that partnership with Saudi Arabia for many years provided the United States with global financial hegemony - after all, an agreement to trade oil for dollars in the distant 1975 year became one of the foundations of the dictatorship of the American currency. what, if OPEC countries + abandon the dollar?
A photo: © Global Look Press/Stefan Klein/imageBROKER.com
Of course, Biden may try to raise the stakes and go for a complete break in relations with the Saudis. But wouldn't that be suicidal for American hegemony??
And on the opposite side of the scale - the defeat of the Democrats in the midterm elections to Congress. However, they would have lost them anyway. Even if Riyadh made concessions and increased oil production, price cuts at American gas stations would have happened after the vote. So for the Americans there are more image losses, when even the closest allies wipe their feet on them.
It's just that with allies you need to be human or something, not like with serfs...
So that, likely, taking radical steps towards Saudi Arabia, as well as the projected concessions to Iran and Venezuela, Washington won't go. They will just pay so much for gasoline, how much will the market demand. And traditionally scold Russia for this. That's just a crack in the reputation remains.
The funniest, that the Democrats, with their "green course", themselves dealt a severe blow to their own mining industry, in addition, fulfilling Republican-imposed sanctions against Venezuela, driven themselves into dependence on Russian oil products, allowing Russia to take second place in the structure of American imports. And then they decided to abandon raw materials from Russia, forcing others to do the same, or at least join the "price cap".
How to call it? Stupidity? Sadomasochism? Obviously realizing, that the joke about the “gas station country” is no longer very funny, when gas prices in the States themselves broke all records, Biden decided, that the Saudis are his last hope. Only instead of, to ask, habitually began to demand, for which he received a turn from the gate.
It'll be even funnier, when the initially stupid idea with the “price ceiling” fails, Americans will eventually lose not only face, but also money. It is a trap, which they put upon themselves and fell into it themselves...
Can, of course, urge citizens to send bills from gas stations to Putin and bin Salman. But it is unlikely that citizens will appreciate it ...
*organization banned in Russia.
Yuri Gorodnenko
