Opec+ Production Cuts Further Strains US/Saudi Relations

The surprise Opec+ production cuts further strains US relations with Saudi – a move which US officials have called unadvisable.

• "We don’t think cuts are advisable at this moment given market uncertainty - and we’ve made that clear," a spokesperson for the National Security Council said.
• "We’re focused on prices for American consumers, not barrels, and prices have come down significantly since last year, more than $1.50 per gallon from their peak last summer," the NSC spokesperson said.
• The cuts of an additional 1.16 million barrels per day plus 500,000 bpd from Russia till year end have pushed crude prices by over 5% today and stoke fears of further inflationary pressures for central banks thought to be coming to the end of their rate hikes.
• The move adds further evidence of Biden’s lack of influence on Saudi oil production after being snubbed last year after a Middle East trip to encourage Gulf producers to increase production.