State Department: OPEC + oil production will decrease less than announced

Real oil production by OPEC+ countries may fall four times less than announced. The announced plans serve more political goals than they can affect the markets, said Amos Hochstein, an adviser to the State Department for energy security.

In early October, the cartel decided to reduce daily oil production by 2 million barrels, despite US protests.

“They say they’re not really going to cut 2 million, but only cut 900,000. Then we look deeper and see only 500,000. So the consequences will not be so significant for the market. This statement from OPEC + was in more political, – quotes the words of Hochstein TV channel CBS.

The State Department spokesman also noted that the downward trend in world oil prices is continuing, comparing the July price of $120 per barrel with the current $85.

On October 11, US President Joe Biden said that Washington intends to reconsider relations with Saudi Arabia after the OPEC + decision to reduce oil production. According to the American leader, Riyadh actually sided with Moscow and thus stabbed Washington in the back. Biden also promised Saudi Arabia “consequences for what they did together with Russia.”

Recall, on October 5, the OPEC + countries decided to significantly reduce oil production from November. They will reduce production by 2 million barrels per day from the quotas approved in August.

Kremlin spokesman Dmitry Peskov said OPEC+’s decision to cut oil production is a victory for common sense. He also convicted the Americans, who are “warming their hands” on the energy crisis in European countries, of selling gas at exorbitant prices.