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    Home > Chemicals Industry > Petrochemical News > US media: Saudi Arabia rejected Biden's request to increase oil production

    US media: Saudi Arabia rejected Biden's request to increase oil production

    • Last Update: 2023-02-05
    • Source: Internet
    • Author: User
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    Saudi Arabia refused Biden's request to increase oil production, and the New York Post published an article on August 3, local time, reporting that Saudi Arabia announced on August 3 that they would increase oil production by 100,000 barrels
    per day starting next month.
    According to the New York Post, this is only a drop in the bucket
    compared to the huge energy demand in the United States.

    Just after Saudi Arabia slapped the United States, on Wednesday night Beijing time, the 31st OPEC and non-OPEC oil-producing countries ministerial meeting was held
    .
    According to OPEC+ representatives, OPEC+ agreed to increase production by 100,000 bpd in September, much lower than the previous increase
    .

    At a time of tight supply, OPEC+'s September production increase was much lower than its increase in recent months, and it had agreed to increase production by more than 600,000 bpd
    in July and August.
    Delegates revealed that ministers supported the proposed
    production increase.
    Participants also said that OPEC+ will distribute production increase quotas
    among member countries on a proportional basis.

    The New York Post quoted Matt Smith, an analyst at market research firm KPLER, as saying it was a slap in the face
    to the Biden administration.

    In recent months, OPEC+ has only delivered on a small part of its commitment
    to increase production as only Saudi Arabia and the UAE have been able to increase production.
    However, this increase in production is a weak sign
    that Saudi Arabia and the United States are on the road to reconciliation.

    The analyst agency pointed out that the proposal of the OPEC+ Joint Ministerial Supervision Committee (JMMC) to increase production by 100,000 bpd in September may have little
    effect on alleviating the current market supply tightness.
    For now, this modest offer is not enough to resolve the current tension in
    the market.
    This may be just a verbal commitment to the U.
    S.
    call for an increase in production, but as a symbolic gesture, its impact is greater than anything else, which explains why oil prices are rising
    .

    US President Biden arrived in the western Saudi city of Jeddah on the afternoon of July 15 local time to begin a two-day visit
    to Saudi Arabia.
    Seeking oil and planning a "small circle" in the Middle East by visiting Saudi Arabia and attending the "security and development" summit in Jeddah, Saudi Arabia, is the focus of
    Biden's trip.
    According to external analysis, the Biden administration hopes that Saudi Arabia and other Gulf oil producers will increase production to lower international oil prices, ease domestic inflationary pressure in the United States, and help the mid-term elections
    .
    In addition, the intention of the United States to form gangs in the Middle East, build a "Middle East version of NATO", and contain countries such as Iran and Russia is also obvious
    .

    However, Saudi Crown Prince Mohammed was vague about increasing oil production in his speech at the Jeddah summit, saying that Saudi Arabia "has the ability" to increase oil production to an average of 13 million barrels per day, but has no additional capacity to continue to increase
    crude oil production for the time being.
    As for Biden's intention to win over Middle Eastern countries against Iran, Russia and other countries, the leaders of various countries attending the summit did not have a clear response
    .

    Previously, oil prices soared as countries eased pandemic policies and economic activity resumed, but they have slipped in recent weeks due to market concerns about global economic growth, giving up most of
    the gains since the Russia-Ukraine conflict.

    OPEC representatives said OPEC needed more time to assess a possible slowdown in global energy demand before calling for a significant increase in oil production
    .
    Saudi officials tried to lower expectations, reiterating that Saudi Arabia would take the necessary steps to balance the market
    in the event of a supply shortage.

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