November 27, 2022

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US dissatisfaction with the Saudi plan to reduce oil production

US dissatisfaction with the Saudi plan to reduce oil production

France Press agency

NOS . News

In the United States, there is great dissatisfaction with the position of Saudi Arabia, which, along with other countries of the Organization of Petroleum Exporting Countries (OPEC), decided to produce less oil. Falling oil production is driving up prices, filling Putin’s war chest and hurting consumers at the pump.

Democrats in Congress are angry that Saudi Arabia is strengthening Russia’s position and leaving the United States out in the open. According to members of Congress, Saudi Arabia should be grateful to the United States for taking many advanced weapons from the country and joining them militarily. Congress issues an ultimatum to the kingdom to reverse the decision.

OPEC, along with occasional partners such as Russia, decided last week To significantly reduce oil production. The plan is to pump 2 million less barrels of oil per day from November. This is two percent of the world’s total oil production. Production cuts should keep oil prices at a high level.

Russia in particular is said to have pushed for production cuts. This country has an interest in that because oil prices will rise. As a result of the war in Ukraine, Russia sells less oil and gets paid less for oil.

arms delivery to Saudi Arabia

Saudi Arabia does not agree with the American criticism, considering it a purely economic decision. The oil-rich country says it is a joint decision of the Organization of the Petroleum Exporting Countries (OPEC). They say that the “balance between supply and demand” has been considered. The decision was also made, according to the state, to reduce market volatility.

The United States, Saudi Arabia and Russia have been the top three oil producers for years with a daily oil production of about 10 million barrels. However, Russian oil production has fallen in recent months from 11 million barrels to 9.7 million barrels per day due to sanctions and the oil boycott.