Despite attempts to appease the OPEC+, the Biden administration got rewarded with a hefty oil cut that will bear down the redlining US economy.
US inflation is driving prices through the roof, the oil alliance has given its assessment, and the White House will face a reckoning soon.
OPEC Decides To Cut Oil Production
In a landmark decision, the Organization of Petroleum Exporting Countries (OPEC) and its oil-producing allies called OPEC+ will lessen output by 2 million barrels per day (bpd) at the summit on October 5 in Vienna, according to the official OPEC website.
Such actions by the oil alliance are expected, and the lessened output came about as US President Joe Biden met with Mohammed Bin Salman, prostrating not to execute the feared outcome but came back empty-handed, reported The Epoch Times.
The cuts came as little surprise to markets, which had been expecting the cartel to slash output even as the Biden administration reportedly launched a last-ditch effort to persuade OPEC not to go ahead with the oil cuts threatening to bring down a red lining US economy.
An upset White House prepared a statement from the US Treasury Department, mentioned by CNN, that called the cuts a debacle and accused the OPEC body of hostile acts.
Saudi Reasons Oil Cuts Meant To Provide Market Stability
Right after OPEC+ members rendered the unanimous decision, Saudi Arabian Energy Minister Prince Abdulaziz bin Salman ignored another suspicious script from the Western alliance.
This new narrative claims that less production is a weaponization of oil by the body. That is not the case because it is crucial to stabilize a rocky oil market.
Immediately the cost of Brent crude and West Texas Intermediate (WTI) futures at 11 a.m. EST on Oct. 5.
The 46th president wrecked oil dependence. According to Sen. John Kennedy (R-La.), the US abandoned oil independence and chose to be at the mercy of OPEC and other oil producers; now, the cost of gas per gallon is too high at the pump.
He posted on Twitter that OPEC has taken advantage of Joe Biden's dependence on foreign oil, driving prices up in his state.
Experts see the oil cartel's decision to cut production to two million barrels as a way to halt the slide in oil prices, which peaked at $120 per barrel in the spring and have since fallen to around $90 per barrel due to the effects of an economic downturn.
According to the oil broker of PVM, Stephen Brennock, he told an outlet that OPEC+ does not want less than $90, and they intend to keep it. Attempts of the Federal Reserve and US banks had raised interest rates to deal with inflation.
The New York billionaire and refiner John Catsimatidis spoke to an outlet and stated that everything is on President Biden and his disregard for the Middle East. He added that the White House is not capable of dealing with this situation before the final OPEC+ cut. Approximately 100 million bpd of oil are consumed worldwide.
After the oil cut, John Kirby told Fox News the oil group was adjusting its output from last summer. The White House spokesman was cautious to avoid untoward statements.
The Biden administration got the oil cut from OPEC+; when redlining the US economy is entering the midterms, that will be negative for him.