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. This move angered White House . After the announcement of
, 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 the White House is reevaluating the relationship between the United States and Saudi Arabia . In addition, two Democratic lawmakers in the United States have submitted a bill to suspend the sale of weapons to Saudi Arabia.
As of press time, international oil prices fell in the short term, and WTI crude oil fell below US$88 per barrel, down 2.08% during the day. Brent crude oil fell below $93 per barrel, a day drop of 1.76%.
US lawmakers proposed to suspend the sale of weapons to Saudi Arabia
OPEC and non-OPEC oil-producing countries held the 33rd ministerial meeting in the capital of Austria on the 5th, deciding to significantly reduce production from November this year, and reduce monthly output by 2 million barrels per day based on August production. The scale of this production cut is equivalent to 2% of the global average daily oil demand. AFP said the move angered the White House and raised concerns about a possible surge in oil prices.
11, two Democratic lawmakers in the United States submitted a bill to suspend the sale of weapons to Saudi Arabia.
reported that if the bill is passed, the United States will suspend the sale of weapons and equipment for a 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.
Analysts said that due to increased winter demand and OPEC+ production cuts, the United States may once again see a surge in oil prices, and national gasoline prices are expected to exceed $4 per gallon, which will further endanger the Democratic midterm elections.
Previously, the U.S. government has been putting pressure on major oil-producing governments to discourage them from reducing 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.
U.S. President Biden At an interview on the 11th local time, he was asked about the possible response of the major oil-producing countries to decide to cut production sharply from November. He said he would respond to this move, which would bring "consequences" to Saudi Arabia.
The United States said it is reassessing relations with Saudi Arabia
Previously, 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 spokesman John Kirby said that the White House is reevaluating the relationship between the United States and Saudi Arabia.
John Kirby said the White House is open to 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 production cuts would lead to "serious disasters" and even be regarded as "hostile acts."
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 27th that Saudi Arabia supports major oil countries to reduce production in order to stabilize the global market.
According to Global Times , Liu Zhongmin, professor at the Middle East Institute of Shanghai International Studies University, said that it is unlikely that the United States will freeze all cooperation with Saudi Arabia, but it may suspend specific arms sales projects in a specific period.Liu Zhongmin believes that Saudi Arabia's long-term reliance on US security guarantees and the United States needs Saudi Arabia's cooperation on regional issues will not be shaken, so the United States and Saudi Arabia will not completely "break up".
Some analysts believe that the decline in energy demand related to the slowdown in the 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.
editing|Lu Xiangyong Du Hengfeng
proofreading|Sun Zhicheng
Daily Economic News is comprehensive from CCTV News, Global Times, First Financial
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