Russia is satisfied, the United States is dissatisfied
OPEC+, which includes Russia, decided on October 5 to sharply reduce production.
Reuters writes that USA His administration called taking such a step in an already tight market “short-sighted”.
Saudi Arabia, the de facto head of OPEC, says the 2 million bpd production cut is a necessary response to rising interest rates in the West and a weaker global economy.
2 million barrels per day is 2 percent of global supply.
Russia deal with?
Russia deal with?
In order to raise Saudi prices Russia denied the criticism that he had entered into a deal with and said that the West often speaks out of “arrogance of wealth” when criticizing OPEC.
The White House said the president Cho Biden assesses how much oil needs to be released from strategic reserves to keep oil prices low.
The White House said:
“President disappointed by the short-sighted decision of the OPEC+ group to reduce production quotas at a time when the global economy is struggling with the ongoing negative effects of Putin’s intervention in Ukraine.”
USAOn the eve of the mid-term elections, Biden’s rating fell due to rising inflation, and he USAcalled Saudi Arabia, which is a close ally of
Reduce Moscow’s income
US officials say that Washington’s desire to lower oil prices stems from its desire to reduce Moscow’s oil revenues.
Biden this year in Riyadh trip however, he was unable to convince the kingdom to make energy commitments.
Saudi Arabia’s failure to condemn Moscow’s aggression against Ukraine further strained relations.
Reuters writes that the decision to cut production on October 5 in Vienna may revive the price of oil, which has fallen from $120 to $90.