The US is considering options to respond to the OPEC+ decision to cut oil production. This was announced on October 6 by US Secretary of State Anthony Blinken.
“As regards the relationship [с Эр-Риядом] going forward, we are considering a range of response options. We are consulting closely with Congress, ”Blinken was quoted as saying at a press conference in Lima by the agency. Reuters.
The head of the State Department, however, did not elaborate on the details of the response.
The OPEC+ countries made a decision on oil at a meeting of the ministerial monitoring committee on October 5. It follows from it that countries should reduce the production of black gold from November by 2 million barrels per day. Against the backdrop of the news, the cost of Brent rose above $93 per barrel. In the next month, the price may rise to $100 per barrel, analysts predicted.
According to Deputy Prime Minister of the Russian Federation Alexander Novak, based on this, in 2022 Russia will produce about 530 million tons of oil and gas condensate, in 2023 – 490 million tons.
US President Joe Biden said he was disappointed with the “short-sighted” decision of OPEC + to cut oil production. He noted that he intends to support the market with additional commodity interventions from strategic reserves.
At the same time, it was reported that the reduction in oil production could reflect badly on the Democrats during the US midterm elections in November.
It was noted that the head of the White House could not convince Saudi Prince Mohammed bin Salman Al Saud to produce more oil amid rising fuel prices.
On September 9, Saudi Aramco, the national oil company of Saudi Arabia, announced that oil prices would decrease for buyers from all regions except the United States. For customers in Northwest Europe and the Mediterranean countries, prices for almost all grades of Saudi oil will be reduced by $2 per barrel.
OPEC+ has been steadily increasing its oil production quota by nearly 400,000 barrels every month since the beginning of the year. In September, the cartel and its partners decided to limit their growth to 100,000 barrels, and the quota increase slowed down.
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