About the United States taking a number of financial policy measures to suppress rising oil prices, the Organization of Petroleum Exporting Countries (OPEC ) decided to take action to fight back against the United States. According to CCTV News , "OPEC+" is planning to reduce production on a large scale, and "OPEC+" may discuss the major production cuts at the ministerial meeting this week and may come up with specific plans. After the news of OPEC's sharp production cuts spread, international oil prices rose in response to the news. New York oil prices increased by more than 5%, while Brent oil prices rose by more than 4%. Some sources pointed out that the sharp reduction in OPEC production will inevitably anger the United States. On the one hand, Biden is urging the EU to limit prices on Russian oil to reduce Russia's energy income and achieve the purpose of suppressing and sanctioning Russia. Previously, Biden and others visited Middle East countries in person, demanding Middle East oil producers to increase production and reduce the world's crude oil price; on the other hand, through the Federal Reserve rate hike, the US dollar trend is enhanced, and while passing on the risks of domestic inflation in the United States, it further controls the world oil market.
However, what was greatly unexpected to the United States was that Saudi Arabia and other countries openly opposed and challenged the United States, reached an agreement with Russia to jointly reduce oil production and prevent oil prices from continuing to fall, and directly challenged the hegemony of the US dollar. According to sources, OPEC plans to cut production by 1 million barrels per day, which is exactly what Moscow means. Once OPEC's decision is completed, Biden's plan to limit oil prices on Russia will also fail, which will inevitably make Biden's midterm election worse.
The reason why OPEC has the confidence to play directly with the United States in the oil field is related to China's important role in the global oil field. It is reported that China took action at a critical moment and continued to import oil and gas from OPEC and Russia, turning a blind eye to the pressure from the US to release inventory, which greatly increased the confidence of the Middle East oil countries, thus resulting in the scene of oil producers collectively fighting the hegemony of the US dollar and reversing the situation.
According to insiders of the OPEC organization, "OPEC+" initially plans to hold a ministerial meeting on October 5 and make a decision on oil production cuts at the meeting. OPEC may make major adjustments in daily production, and a single-day production may be reduced by 1 million barrels, which is equivalent to 1% of the world's total daily crude oil consumption. If we look at the numbers alone, it seems that a reduction of 1 million barrels is not a particularly large adjustment, but in fact, for the current situation of high energy, it will produce a very obvious butterfly effect . The rise in New York oil prices and Brent oil prices are examples. Before OPEC has determined the final plan, the market oil prices have risen by 3% to 4%. It is difficult to judge how much fluctuate the oil prices will fluctuate after the production cut plan is determined.
For this situation, the famous American investment bank Goldman Sachs also proposed an analysis. They believe that OPEC's choice to cut production at this time is equivalent to a head-on competition with the Federal Reserve. Moreover, judging from the current global dependence on energy, OPEC has a high probability of winning this game. In response, Goldman Sachs Investment Bank Kulvalin and Curry jointly released a report that analyzed the current situation of OPEC and the Federal Reserve and the possible measures taken by both sides to explain the recent rebound in global crude oil prices. The article pointed out that if OPEC finally decides to cut production by 1 million to 1.5 million barrels per day, this is a considerable extent and will inevitably lead to a rebound in global oil prices.
analysis report believes that the Federal Reserve has tightened the US dollar through its continued interest rate hike policy, causing the US dollar to appreciate rapidly. This move directly hit global oil prices, causing oil prices to fall by 40%. Moreover, the Fed's move effectively hit the flow of market funds to the energy sector, preventing these capital from pushing up oil prices. These measures can be said to be a shot of a strong shot for the US economy, which is in high inflation and is relatively weak, and can suppress the high inflation problem in the US. But what the Fed did not expect was that OPEC became very tough and did not succumb to the United States as it used to. Therefore, global crude oil prices are also strong. As long as the US policy is relaxed, oil prices will rebound.
From the current global oil price, it remains at a high level of more than 80 US dollars per barrel, and it is difficult to drop, but it is easy to rise to the 100 yuan mark again. In fact, the reason why OPEC has confidence is related to China and Russia. Now OPEC chooses to stand on Russia's side, jointly respond to the pressure from the United States, and directly fight with the oil in his hands with the US money printing machine. At the same time, OPEC promoted energy cooperation with China, and with stable big buyers, OPEC's oil was not worried about selling. In Section 77, UN General Assembly , the six members of GCC actively met with China to discuss cooperation. Most of the GCC members are OPEC members. Obviously, in the view of the OPEC, strengthening cooperation with China is a feasible way to combat the hegemony of the US dollar.
