Every Business News: Chen Pengcheng
According to CCTV News, citing multiple American media reports, regarding the decision of major oil-producing countries to reduce crude oil production from November, on 211, two Democratic lawmakers in the United States submitted a bill to suspend the sale of weapons to Saudi Arabia .
reported that if the bill passes, the United States will suspend the sale of weapons and equipment for Saudi for one year.
The US "Political News" reported on the 6th that many Democratic lawmakers in the United States are angry at the increasingly unbalanced relationship between the United States and Saudi Arabia. Some Democratic American lawmakers have proposed that the US government hopes to use both soft and hard methods to persuade Saudi Arabia to change its mind through various means.
Previously, the U.S. government has been putting pressure on major oil-producing governments to discourage them from cutting production. But this move did not work. After major oil-producing countries announced their decision to cut production, some American media pointed out that this was a failure of US diplomacy.
Previously, according to CCTV News, on October 5, the 33rd ministerial meeting of the Organization of Petroleum Exporting Countries ( OPEC ) and non-OPEC oil-producing countries, namely "OPEC+", decided to reduce the average daily crude oil output by 2 million barrels from November.
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After the news was announced, the United States expressed disappointment. Prior to this, the U.S. government has been putting pressure on major oil-producing governments to prevent crude oil production cuts. On the 11th local time, US National Security Council spokesperson John Kirby said that White House is reevaluating the relationship between the United States and Saudi Arabia .
John Kirby said on the 11th that the White House is open to the retaliation measures proposed by Democratic Congressmen, including restricting the security cooperation between the United States and Saudi Arabia, cessation of arms sales and antitrust measures.
According to US media reports, in the past few weeks, the Biden administration has launched a "comprehensive pressure action" to send a group of senior energy, economy and foreign policy officials to contact Kuwait, Saudi Arabia, the UAE and other Middle East allies to lobby for them to vote against production cuts.
According to reports, the officials were asked to inform Middle Eastern oil-producing countries that the reduction in production would lead to a "serious disaster" and even be regarded as a "hostile act" . After the Organization of Petroleum Exporting Countries and non-OPEC oil-producing countries decided to cut crude oil production on the 5th, the U.S. government said in a statement that US President Biden was disappointed with the decision to cut production, and Biden has instructed the U.S. Department of Energy to release another 10 million barrels of oil from its strategic oil reserves next month.
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OPEC Secretary-General Gaes refuted the accusations of the US in an interview with the media on the 5th. He said that the decision to cut oil production has no political motivation and does not endanger the energy market. OPEC is providing security and stability for the energy market.
Saudi Foreign Minister Adel Jubair said on the 47th that Saudi Arabia supports major oil countries to reduce production in order to stabilize the global market.
Some analysts believe that the decline in energy demand related to the slowdown in global economy is the most concerned issue for OPEC and non-OPEC oil-producing countries. In recent times, international crude oil prices have fluctuated and lowered due to market concerns about the prospects of global economic growth. The main contract price of New York crude oil futures fell sharply from more than $120 per barrel in June this year to about $87 per barrel at the current level, falling back to the level before the Russian-Ukrainian conflict.
It is worth mentioning that according to the Economic Reference Network on October 12, Naim Aslam, chief market analyst at market broker AvaTrade, said in early September that OPEC and non-OPEC oil-producing countries are likely to take action to prevent oil prices from continuing to fall. He believes that tightening supply means that oil prices may rise in the future, and the new normal of oil prices may be between $90 and $100 per barrel .
Daily Economic News is comprehensive from Economic Reference Network, CCTV News
Daily Economic News
