(AP Photo/Anis Belghoul)
JAZZ SHAW | HotAir
Back in April, OPEC+ announced cuts to their oil production of up to two million barrels per day. This was done amid fears that a global economic slowdown would reduce demand, further driving down prices (and profits). Because of the shakey energy situation in the United States, Joe Biden sent envoys to ask Arab leaders to reconsider. Now he apparently has his answer from the oil-rich nations. At this week’s annual OPEC+ meeting, Saudi Arabia announced that it would be “voluntarily” reducing production by another one million barrels per day in July and is urging the rest of the alliance to do the same. The move is expected to slow the gradual decrease in the price of oil and the corresponding cost of gasoline at the pump. It’s also a clear sign that Saudi Arabia and their good friends in Iran don’t give two hoots about any guidance from the White House anymore. (Wall Street Journal, subscription required)
Saudi Arabia said Sunday it would cut 1 million barrels of oil a day as part of a deal between OPEC and its allies after one of the most contentious production meetings in recent years amid concerns over slowing global energy demand.
Saudi Arabia said the output cut was for July and on top of previously announced curbs, which would be extended until the end of 2024. The United Arab Emirates and some other large producers also extended their previously announced cuts.
The Saudi announcement came soon after the Organization of the Petroleum Exporting Countries and its Russia-led allies said the group had agreed to stick to current production targets until the end of the year.
Here is Prince Abdulaziz bin Salma making the announcement.
While it may seem like a distant memory, it was only a few years ago, back in 2019, when the United States was a net energy exporter. We produced all of the oil and gas we needed and were selling quite a bit of it to Europe and other nations. We were cranking out so much natural gas that, at times, the producers were literally giving it away to anyone with a truck capable of hauling it. During the last year of Donald Trump’s presidency, the average price of gasoline actually fell below two dollars per gallon at some points.
During that same period, Trump managed to forge an alliance between Saudi Arabia and Isreal, putting the Saudis in conflict with Iran. And when Donald Trump wanted a favor from the Saudi royal family, he generally got it. Whether that was because they respected him or they were frightened that he might do something crazy can probably never be known. But the relationship worked.
Now look where we are today. A couple of months ago, Saudi Arabia restored their ties with Iran, much to the dismay of our allies in Israel. They also established new trade agreements with Venezuela, shoring up the power of that country’s dictator. And when Joe Biden asked the Saudis to increase production to keep gas prices down as we head into the primary season (after promising to turn them into “pariahs” on the campaign trail), they turned around and slashed their oil output further.
Nobody in OPEC+ respects the United States anymore, and they’re certainly not afraid of us. Why would they be? Meanwhile, we’re struggling to meet our own energy needs while we’re still sitting on some of the largest proven oil and gas reserves in the world. Today’s story offers the perfect intersection between foreign policy and domestic policy in the United States. And both have been equally disastrous under Joe Biden’s tenure. How any sane person can even consider voting for another term for our doddering, pratfalling president is a mystery to me. But here we are. Welcome to life in 2023.
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