In the face of high crude prices and U.S. pressure to help cool the market, OPEC and its oil-producing allies have decided to maintain their current production plan.
In the face of high crude prices and U.S. pressure to help cool the market, OPEC and its oil-producing allies have decided to maintain their current production plan.
OPEC+ will continue its program, announced in August, to increase oil production by 400,000 barrels per day each month.
During a news conference on Thursday, Russias Energy Minister Alexander Novak said: The decision was made earlier to increase production by 400,000 barrels a month, and I emphasize every month, through 2022. The decision was again made to maintain the parameters which were established earlier on Thursday
Novak responded that OPEC and its allies were maintaining market balance and being wary of potential changes in demand while not boosting production despite complaints from oil consumers like the U.S., India, and Japan.
OPEC+ may imperil the global economy by refusing to speed up oil production increases, according to the White House, which has warned the US is ready to use “all tools” to lower fuel prices.
OPEC, led by Saudi Arabia, and its allies, including Russia, refused to help tame rising oil prices, insisting they would only gradually increase production even as demand surges back from the depths of the global pandemic.
Despite being the heir to King Salman and the day-to-day ruler of the country, Biden is refusing to speak with Crown Prince Mohammed bin Salman. US intelligence reported in March that Crown Prince Mohammed bin Salman had authorised the killing of Washington Post journalist Jamal Khashoggi.
Abdullaziz is the half brother of the Crown Prince and is frustrated by western countries efforts to cut their dependence on fossil fuels whilst also pressing the kingdom to increase oil production.
The price of oil has recently reached its highest level since 2014, and countries who import crude are feeling the pain.
Joe Biden pointed to OPEC+s unwillingness to pump more oil for the sharp rise in energy prices in the U.S. and worldwide.
In Rome, Biden said, “the idea that Russia and Saudi Arabia wont pump more oil so that people can get gasoline to get to and from work is wrong.”
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