After oil-producing countries announced on Wednesday that they would increase production by just 100,000 barrels every day starting in September, Analysts have dismissed President Joe Biden’s trip to Saudi Arabia as a complete failure.
And the fact is that a modest increase delivery announced by the Organization of the Petroleum Exporting Countries led by Saudi Arabia and its alliesfalls far short of the energy needs of the United States.
The Biden administration was confident that its diplomatic proposals to Saudi Crown Prince Mohammad bin Salman would add further momentum to the deal.
The 79-year-old president backtracked on his campaign promise to treat Mohammed bin Salman like an “outcast” because The Saudi royal family is said to have planned the assassination of dissident journalist Jamal Khashoggi.
just last month Biden fistfight with Saudi prince during their meeting in Jeddah.
However, despite this gesture of camaraderie between them, which has drawn a lot of criticism from the President of the United States, Oil exporting countries decided to limit supplies as long as prices remain high.
growth 100,000 bpd is well below 648,000 bpd.announced in June.
The US Energy Information Administration indicates that in 2021 citizens of the country consumed an average of 19.78 million barrels of oil per daytherefore, the production increase announced on Wednesday will cover only seven to seven and a half minutes of national demand.
After the OPEC+ announcement, analysts believed that this represents a failure for Biden.
Matt Smith, chief analyst at trade analytics firm Kpler, spoke to CNN about the matter, saying: “This is a slap in the face of the Biden administration (…) This trip, the meeting with MBS just didn’t go well.”
“I must say that I’m surprised they only dumped 100,000 barrels a day.said Robert Yauger, vice president of energy futures at Mizuho Securities.
For its part, the White House agreed with this. the announcement will not have a measurable impact on gasoline prices.
In an interview with CNN, White House chief energy security adviser Amos Hochstein pointed out that the OPEC+ move was a “step in the right direction” but he declined to answer when asked if Biden was disappointed.
When asked by White House press secretary Karine Jean-Pierre if the president “got what he wanted out of the trip,” she pointed to a chart showing that Gasoline prices fall after hitting record average highs over $5 a gallon in mid-June.
Source: La Opinion
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