OPEC+ Cuts Oil Production by 2 million

In an official photo released by the Saudi Royal Palace in July of 2022, President Biden fist bumps Saudi Crown Prince Mohammed bin Salman (Bandar Aljaloud/Saudi Royal Palace).

It is now clear that the time between American presidents attempting to request imperative favors from Saudi allies, is over.

Article by Tessa Peloso, White House Reporter

WASHINGTON - OPEC’s decision to reduce oil production was decided at OPEC’s Vienna headquarters, and in attendance was Russia’s deputy prime minister who is under U.S. sanctions. This decision undercuts President Biden’s plan to avoid an increase in gas prices before the midterm elections.

The decisions made my OPEC and its allied oil producers emphasize the economic challenges the United States is facing, a possible risk of recession.

The White House has attempted to prevent these 2 million cuts, and called on their closest Arab allies, Saudi Arabia. The effort by Washington to pause the oil production cut was unsuccessful and learned that Biden’s influence over his Gulf allies did not go as planned.

The Saudis will “do what we let them get away with doing,” Rep. Tom Malinowski (D-NJ) told Playbook on Wednesday night.

The meeting OPEC held between Saudi Arabia and Russia, brought on a multitude of foreign economic issues that affect domestic politics in the United States and the war in Ukraine.

President Biden expected Saudi Arabia to increase its production by 750,000 barrels per day and the United Arab Emirates would follow with 500,000 more. This would have lowered gas prices and worsened President Vladimir Putin’s plan to fund a war.

This production cut will significantly reduce global daily production by 2%. The effect of this will cause gas to rise 15 to 30 cents per gallon at the pump. This situation is unraveling with midterm elections only one month away.

The cut that was determined on Wednesday sent the message that the Saudi’s do not plan on helping the United States. White House officials stated that the Energy Department is planning on releasing another 10 million barrels next month.

It is now clear that the time between American presidents attempting to request imperative favors from Saudi allies, is over.