Recently, international energy issues have once again become the focus of the topic. Under the leadership of Saudi , the Organization of the Petroleum Exporting Countries "OPEC+" decided to cut oil production under the leadership of Saudi Arabia. "OPEC+"'s action was strongly opposed by the United States, and it publicly demanded the revocation of the order or delayed the production cut schedule.
Faced with the pressure exerted by the US, Saudi Arabia, as the leader of "OPEC+", does not accept the orders of the Biden administration and move forward with the burden and firmly makes its own decisions, which is bound to implement oil production cuts. When the United States saw that its orders could not control the decision of "OPEC+", it began to point its finger at Saudi Arabia and even publicly threatened to retaliate against Saudi Arabia.
Recently, in his speech in the midterm elections, Biden not only criticized former president Trump and further expressed his dissatisfaction with the Republican , but also criticized "OPEC+" for reducing oil production, and accused Saudi Arabia of "being aligned with Russia", saying that the United States will never allow such behavior and will punish Saudi Arabia.
How will it retaliate against Saudi Arabia? U.S. National Security Adviser Sullivan further stated in his speech that on the one hand, it will conduct a new review of the list of weapons originally sold by Saudi Arabia; on the other hand, during the upcoming G20 summit, President Biden does not intend to meet with Saudi Crown Prince Salman .
When the United States is aggressive, Saudi Arabia has come forward to clarify that oil production cuts are objective reasons. During this period, there are energy extraction problems and epidemic challenges. In short, it is not a problem of "political confrontation". I hope the United States can see Saudi Arabia's difficulties. At the same time, Saudi Arabia's statement also clearly refuted that the US called it "Russia alliance" was purely made of nothing, and Saudi Arabia's production cuts were considered by domestic and even international economic considerations. What caused internationalism is that after Saudi Arabia began to refuse to accept the orders of the United States, many countries in the Middle East also followed suit and said that they would implement the decision to reduce oil production. Iraq , the UAE, Oman , Algeria , Bahrain and other countries have successively made perverts, which will be very tight on the "OPEC+" organization's policy of reducing oil production and make corresponding oil production cuts. Even though the United States has threatened to retaliate against Saudi Arabia, the Middle East countries have still made statements of production cuts one after another. Is it the US threat that it is useless?
In fact, it is not that the US threat has no deterrent effect on Middle Eastern countries, but that it has to be done by comparison. If oil production is not reduced, it will face major economic challenges for the entire member states of the "OPEC+" organization.
From an economic perspective, Saudi Arabia and other major oil-producing countries decided to reduce oil production in line with the economic development state. At present, the global economy is in a very recession. What follows is likely to be the great recession of the global economy. Oil prices are the same as other bulk products, and prices will fall sharply.
And Russia, Saudi Arabia, Venezuela and major oil-producing countries in the Middle East have reduced oil production during this period, which can effectively curb the trend of falling oil prices to a certain extent.
The reason why the United States opposes oil production cuts is because the United States' severe inflation problem has been alleviated in recent times because of the lower energy prices.
If the oil price is stabilized due to the production cuts of "OPEC+", it means that energy prices will no longer fall or even rise. For the United States, prices in various aspects such as food, housing, and medical care will continue to rise, and then the inflation in the United States will be in control again. It is likely that it will not be possible to keep it back if the Federal Reserve raises interest rates by 275 basis points.
Once the US economy becomes a wild horse, the most tense thing is the Biden administration, especially the midterm elections are getting closer, while Biden's votes are not satisfactory. According to Reuters , in the poll data in early October, Biden's approval rating dropped to 40%, which is the lowest approval rating of recent US presidents before the midterm elections.
Therefore, when "OPEC+" announced the production cut, Biden was extremely indignant. In fact, it is not difficult to understand. If the inflation problem is not properly resolved, the Democratic Party is likely to lose control of the House of Representatives when the approval rating is severely declined, and Biden's administration will face various restrictions as a result.
On the other hand, the game in the global energy market has become fierce, which is why many Middle Eastern countries such as Saudi Arabia have to decide to stabilize oil prices through production cuts.
But this hard-hitting struggle between Saudi Arabia and many Middle East countries and the United States has made the international community smell an extraordinary meaning, that is, Middle East countries intend to break free from the control of the United States in terms of oil, just like Saudi Arabia, an old ally who joined forces with the United States to overthrow the Soviet Union many years ago.
For Saudi Arabia, the US economy and politics are in chaos. Even if it is sanctioned in terms of weapon sales, it may be possible to go with the flow and buy from other channels, and there is still a chance to make the United States lose its pricing power for oil.
