" Global Times " quoted foreign media reports that the Petroleum Export Organization revealed that "OPEC+" is currently considering reducing production by about 1 million barrels of oil per day.
Under the interweaving of the epidemic and the conflict between Russia and Ukraine, oil prices have also begun to fluctuate frequently, and under the control of the United States and other Western countries, oil prices have been falling all the way.
In order to maintain the stability of oil prices and the basic interests of the member states of "OPEC+", the organization will hold a face-to-face meeting in the near future to discuss related matters on oil production cuts.
And one of the main oil-producing countries of "OPEC+", Saudi Arabia also said that production cuts may become the organization's next main measure. The most direct impact of oil production cuts is the rise in oil prices.
Previously, the multiple hikes of the US dollar in and the tension in the global economic situation had already caused oil prices to fall for a while, and the United States and its allies have repeatedly put pressure on "OPEC+" to increase production and lower oil prices, which seriously damaged the interests of a number of member states such as "OPEC+".
First of all, for European countries, they cannot follow the United States and ease their domestic inflation through repeated interest rate hikes; secondly, many European countries are now facing the problem of energy shortage. Once oil prices rise, it will undoubtedly be a new test for Western countries that are already in the quagmire of economic crisis.
In addition, if we look at this from the perspective of the United States, Russia, as one of the main oil-producing countries of "OPEC+", if oil prices rise, it will inevitably allow Russia to gain huge benefits from it.
But in fact, from the Russian-Ukrainian conflict, the United States' actions and statements, we can see that the United States actually wants to suppress Russia through Ukraine. If oil prices rise, it will increase Russia's economic income and fill Russia's losses in the Russian-Ukrainian conflict to a certain extent. This is naturally not what the United States is willing to see.
After all, before this, the United States had announced that it would limit the price of Russian oil exported to other countries , and stated that in the G7 framework, whether individuals or entities, if they purchase Russian oil at a price higher than the United States' limit, they will be subject to sanctions from the United States.
It is not difficult to see that the United States has a great "determination" to limit oil prices, and even its allies must "according to it strictly". It is worth mentioning that in addition to the United States, EU has also launched a new round of sanctions against Russia.
It is reported that the EU has now reached an framework agreement on the eighth round of "anti-Russia" sanctions, including agreeing to limit prices on Russian oil. It can be seen that although many EU countries have been backfired by sanctions on Russia, under the influence of "political correctness", they still cannot stop sanctions on Russia.
However, as soon as the Russian oil price limit was dropped, Biden received bad news. While the United States and the European Union were taking action, "OPEC+" released news that it was about to cut production significantly, which even accounted for 1% of global supply.
More worth mentioning is that just a week before "OPEC+" was exposed to production cuts, a source revealed that Russia has sent a signal to "OPEC+" that the latter can cut production by 1 million barrels per day.
Regardless of the relationship, as far as the United States and Russia are concerned, the two countries' ideas about oil prices are mostly contrary to each other. If "OPEC+" really decides to cut production significantly, it will inevitably affect the sanctions imposed by the United States and the West on Russia, especially the economic suppression.
But from Russia's perspective, on the one hand, the income from exporting oil can alleviate its domestic economic pressure, and on the other hand, the move of oil production cuts can actually weaken the manipulation of the US and Western countries over global oil prices. Because in essence, OPEC is an organization established to oppose the monopoly and exploitation of the global oil market by the United States and Western countries.
Now, taking the opportunity to further break the "hegemony" of Western countries' pricing on oil is actually in line with OPEC's overall interests.Based on all of the above, Brennook, an analyst at PVM Oil Economy, said that "OPEC+" will now stick to the price of $90 per barrel of oil and take appropriate actions for it.
After all, the reduction in oil production is related to the interests of the entire "OPEC+" member states. Therefore, specific matters need to be discussed through the meeting, but the overall direction should not change, that is, maintain oil prices through production cuts. However, no matter how much it is reduced or how it is reduced, it is not good news for Western countries.
For the United States, although it is also one of the world's oil exporters, it is something it is even more unwilling to see that Russia can make profits. Although the United States has not made any comments on the idea of "OPEC+" reducing oil production, According to Reuters , citing sources, the Biden administration is now asking "OPEC+" to stop reducing production.
And the chairman of the U.S. House of Representatives Environmental Subcommittee Connor officially issued a direct warning to Saudi , saying that if Saudi Arabia supports production cuts, it will be regarded as the so-called "help for Putin ", then will consider stopping supply of Saudi Arabia in terms of aviation parts.
In general, this "OPEC+" production cut plan will undoubtedly bring oil prices to another "earthquake", and Western countries' pricing power for oil may also be affected to a certain extent. Even though the United States has made every effort to obstruct, the first thing the members of the organization should consider in the end is their own interests.
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