America is upset, Russia benefits from OPEC+'s controversial decision 0
(Dan Tri) – The announcement by the world’s most powerful oil producer group OPEC+ of a plan to deeply cut production has caused controversy while the world is facing an energy crisis.
OPEC+’s move is considered to benefit Russia (Photo: Reuters).
US Secretary of State Antony Blinken announced on October 6 that he was considering options related to relations with close ally Saudi Arabia in the Middle East after Riyadh and OPEC+ countries this week agreed to deepen the reduction.
Specifically, the Organization of Petroleum Exporting Countries (OPEC) led by Saudi Arabia and partners including Russia (referred to as OPEC+) decided to reduce production by 2 million barrels/day from November 2019.
`In terms of relations with Riyadh, we are looking at options to respond. We are in close discussions with Congress,` Mr. Blinken said.
Mr. Blinken did not specifically list the options that the US is considering.
According to Reuters, US President Joe Biden’s administration is concerned that OPEC+ production cuts will push up oil prices before the midterm elections on November 8, causing disadvantages for the Democratic Party in the race to keep oil prices high.
Previously, OPEC+ and the West criticized each other regarding this controversial decision.
Saudi Arabia said the move by the world’s top oil exporters was simply a response to soaring interest rates in the West, where central banks such as the Federal Reserve
The US accused OPEC of `standing on the same side` with Russia and said that this decision was not far-sighted.
OPEC+ includes 13 OPEC countries and 11 partners, including Russia.
According to experts, OPEC+’s move to cut production is expected to benefit Russia.
On October 6, the Kremlin announced that OPEC+’s decision was intended to stabilize the market.
According to experts, the West seems to be the one that will continue to suffer losses from rising oil prices while they are still looking for a way out of the energy crisis in recent months.
Analysts from US bank Morgan Stanley said that production cuts will tighten the oil market significantly, especially when the EU embargo on US oil and refined products
Although Russia is expected to benefit from rising oil prices, it must also accept selling cheaper prices to partners in Asia to offset Western sanctions, Reuters said.
