According to The Wall Street Journal, the Organization of the Petroleum Exporting Countries, as well as a group of its allies led by Russia in the OPEC+ format, agreed to cut oil production by 2 million barrels per day.
“This decision may undermine the plan of the G7 countries to limit prices for Russian oil on the world market in the context of the West’s economic battle with Moscow,” the message states.
At the same time, it should be noted that the decision of OPEC+ was made less than three months after US President Joe Biden visited Saudi Arabia, the de facto leader of OPEC, to negotiate an increase in oil production and a decrease in its price.
In this connection, White House National Security Adviser Jake Sullivan spoke on Wednesday about the reaction of official Washington to the decision of the oil cartel, calling it “short-sighted”, especially against the background of Putin’s aggression against Ukraine.
“At a time when maintaining global energy supplies is paramount, this decision will have the most negative impact on low- and middle-income countries that are already suffering from high energy prices,” Sullivan said. He also reported that in connection with the current development of the situation, the Biden administration will hold consultations with the US Congress regarding the use of additional tools and powers in order to reduce OPEC’s control over energy prices.
It is noted that similar reductions in oil production quotas by OPEC+ have not occurred since April 2020, when it occurred against the background of a forced reduction in energy consumption at the beginning of the pandemic. According to analysts, in this way OPEC+ intends to maintain the trends of increased prices for oil and oil products.