Saudi Arabia and US clash over reasons for OPEC+ production cuts

Saudi Arabia refuses to frame OPEC+ decision for political reasons. It has told the US that the delay will be economically negative. The decision is said to have contained volatility based on market equilibrium. It made a “true” comment on OPEC+’s decision to cut production last week, despite US opposition, saying it would have had a negative impact on the economy if the US had asked on Thursday to delay production cuts by a month. The White House opposed it on Thursday. He said he had presented an analysis to Saudi Arabia that production cuts could hurt the global economy. These twists and turns added to the twists and turns between the two countries, which had already maintained a cold relationship between the two countries that had forged an energy alliance for security for decades. Allies, including OPEC+ OPEC, the oil producing country of the Organization of the Petroleum Exporting Countries (OPEC) and Russia, announced last week that they would cut production by 2 million barrels a day after lobbying US officials against the move. Register now. Inventories in major economies remain at levels lower than when OPEC has cut production in the past, raising concerns in Washington about possible gasoline price hikes ahead of the November US midterm elections. Their Control of the House and Senate US President Joe Biden earlier this week promised that there would be “consequences” to Saudi Arabia-US relations after OPEC. + movement. The OPEC+ decision was adopted by consensus, taking into account the balance of supply and demand, and is intended to contain market volatility, the Saudi Foreign Ministry said in a statement Thursday. At the OPEC+ meeting, we have been asked to delay production cuts by one month.” Saudi Arabia explained, through ongoing consultations with the US administration, that all economic analyzes showed a one-month delay in OPEC+ decisions. The US has accused Saudi Arabia of migrating to Moscow. Russia is opposed to the Western cap on Russian oil prices in response to the invasion of Ukraine. We present our analysis to Saudi Arabia. To show that there is no market base to cut production targets and that the next OPEC can be easily awaited, White House press secretary Jack Kirby said in a statement that “other OPEC countries have told the United States they feel pressure to support Saudi Arabia’s decision.” Oil demand has weakened globally this week as OPEC, the US Department of Energy and the International Energy Agency (IEA) all lowered their demand forecasts for 2023, the official said. However, the IEA on Thursday added that OPEC’s move could exacerbate demand. A tipping point for the global economy already on the verge of a recession.” In a statement, Saudi Arabia viewed Saudi Arabia’s relationship with the United States as a “strategic relationship” and stressed the importance of mutual respect. The Gulf Cooperation Conference (GCC) issued a statement supporting Saudi Arabia’s remarks praising Saudi Arabia’s efforts to protect markets from volatility. In a survey last week, Goldman Sachs found that OPEC’s inventories were among the highest in the world over the past 25 years. Economically cooperative and developing countries made up of 38 wealthy economies were very low. OECD stocks are now 8% below their five-year average. However, they noted that OPEC cut production when demand was weak. Register now for free and unlimited access to Reuters.com. RegisterReporting by Ahmad Elhamy, Moaz Abd-Alaziz and Maha El Dahan; Edited by Jacqueline Wong, Tom Hogue, Jane Merriman and Marguerita ChoyOur Standard: Thomson Reuters Trust Principle.
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