OPEC+ Defies U.S. With Oil Production Increase
OPEC+ countries, including Saudi Arabia, have agreed to increase oil production by 137,000 barrels per day in October, partially reversing previous cuts. This decision comes amidst U.S. midterm elections and rising consumer prices, and has sparked a reaction from the White House.
The OPEC+ alliance, comprising 23 countries, had earlier planned to cut production by 2 million barrels per day from November. However, they have now chosen to gradually increase output, citing stable global oil market conditions and optimistic economic forecasts. Saudi Arabia defended the move, stating the alliance's aim is to maintain a sustainable oil market.
The decision has been seen as a rebuke to U.S. President Joe Biden, who visited Saudi Arabia in July. The U.S. is now considering a review of its relationship with Saudi Arabia, although no formal discussions have begun yet. The U.S.-Saudi Arabia partnership, established post-World War II, has faced challenges and was strengthened under Biden's predecessor, Donald Trump.
The OPEC+ decision has angered the White House and raised concerns about potential oil price increases. Senator Bob Menendez has called for halting all U.S. cooperation with Saudi Arabia, including arms sales and security collaboration, due to Saudi Arabia's support of Russia in the Ukraine war. Despite this, the U.S. State Department recently announced a deal to supply Saudi Arabia with 300 Patriot missile systems.
