Remember when Joe Biden flew all the way to Saudi Arabia last summer to beg the Saudis for more oil?
Biden’s trip to the Middle East last July ended up being fruitless and humiliating and Saudis told Biden to pound sand after he begged for oil.
Now the Saudis are coordinating with some OPEC and non-OPEC members to cut oil production.
The Saudis on Sunday announced it will cut oil production by 500,000 barrels per day until the end of the year.
Oil prices surged nearly 6% Sunday night.
NBC News reported:
Saudi Arabia said Sunday it will cut oil production by 500,000 barrels per day from May until the end of 2023, a move that could raise prices worldwide.
Higher oil prices would help fill Russian President Vladimir Putin’s coffers as his country wages war on Ukraine and force Americans and others to pay even more at the pump amid inflation fueled in part by that conflict.
It was also likely to further strain ties with the United States, which has called on Saudi Arabia and other allies to increase production as it tries to bring prices down and squeeze Russia’s finances.
The Saudi Energy Ministry said the cuts would be made in coordination with some OPEC and non-OPEC members, without naming them. The cuts are in addition to a reduction announced last October that infuriated the Biden administration.
The ministry described the move as a “precautionary measure” aimed at stabilizing the oil market. The cuts represent less than 5% of Saudi Arabia’s average production of 11.5 million barrels per day in 2022.
THE BIDEN EFFECT
Saudi officials announced earlier this year they are ready to to trade in currencies other than the US dollar in a huge blow to the American economy.
Saudi Arabia announced the move following a December meeting with China’s President Xi Jinping. The kingdom is ready to trade in yuan instead of the dollar in trade exchanges.
Saudi Arabia has also announced its intention to join the BRICS alliance.
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