WORLD’S largest oil made up of exporters OPEC organization’s decision to reduce production by 2 million barrels a day from November USACaused disappointment. White House spokeswoman Karine Jean-Pierre also accused OPEC of “standing in the same place as Russia”. Biden’s administration emphasized that the supply shortage, which he described as “negligence”, would create an additional burden on the global economy while struggling with the negativities caused by the occupation of Ukraine.
US President Joe Biden in July Saudi Arabia Although he said that the main purpose of his visit was to “clarify the Middle East and Israel’s positions, not oil”, the American press commented that Washington’s Saudi Arabia policy was unsuccessful.
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TIMING IS BAD
Before the midterm elections in November, Biden faces pressure to contain energy prices and inflation. While the occupation of Ukraine was pushing the fuel price above $5 for the first time in history, Biden went to Jeddah in July and asked Saudi Arabia to increase production and reduce the price of oil. Although the visit concluded without any concrete commitment, it was seen that Saudi Arabia increased production in the following two months.
FEAR OF PAUSE
However, the expectation that giant economies, including the USA, will go into recession, leads to concerns that demand will be cut in oil producers. oil prices 120 dollar alarm bells sounded in the producing countries, and despite the efforts of the White House to the contrary, the decision to cut back was taken.
NYT: FAILED
The American New York Times (NYT) newspaper commented on this development that Biden’s influence on the allies in the Gulf was “much less than he expected”. Biden did not shake hands with Crown Prince Mohammed bin Salman in Jeddah, fearing the reaction of human rights organizations Reminding the newspaper, “fist salute diplomacy has failed,” said. The NYT reported that Prince Mohammed deliberately distanced himself from the United States and was ready to ignore what he saw as contrary to Saudi interests.
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‘US MILITARY WITHDRAW’
After OPEC’s shocking decision, Democrats in the US Congress accused Saudi Arabia and the United Arab Emirates of “actively working against the United States” and submitted a bill to the Congress to withdraw American troops from these countries.
SANCTIONS LEASE TO VENEZUELA
Struggling to keep oil prices low, the USA is preparing to ease sanctions on Venezuela, the world’s largest reserve country, for this purpose. According to the news of the American Wall Street Journal, the US Chevron company will be allowed to extract oil from this country. The deal, whose details have yet to be negotiated, is expected to be announced later this month. Washington announced very harsh sanctions on the Caracas administration in 2019.
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