President Joe Biden’s recent trip to Saudi Arabia, which was fraught with controversy, did not end up in the outcome the Democrat leader wanted.
Despite a highly publicized fist bump, OPEC+ has recently announced that they intend to increase oil production by only 100,000 barrels per day, an amount that is so low in response to Biden’s begging that analysts have referred to it as insulting.
Raad Alkadiri, who serves as managing director for energy, climate, and sustainability at Eurasia Group, weighed in on the response of OPEC+, which was clearly “meaningless” relative to Biden’s needs.
“That is so little as to be meaningless,” Alkadari argued, “from a physical standpoint it is a marginal blip. As a political gesture it is almost insulting.”
The insult is especially sharp considering Biden had just travelled to the country to attempt to pressure the Crown Prince to begin pumping more oil.
Gas prices in the United States remain extremely elevated, which in turn has elevated the prices of basic food items.
Inflation is anticipated to be one of the key issues influencing voters in the fall midterm elections, especially as it spikes to 40-year highs.
Nonetheless, OPEC+ has opted to not help Biden in his reelection challenging, instead pointing to their own challenges in terms of oil output.
Many members have already exhausted their output, and the organization has declared it will not switch to bigger output increases, given that group members have noted an absence of spare capacity.
In addition, the need for improved cooperation with Russia constitutes another justification for cooperation within the broader OPEC+ group.
After the announcement from OPEC+, the Benchmark Brent oil futures jumped by approximately $3 per barrel, trading at approximately $102 per barrel.
It is believed that only the United Arab Emirates (UAE) and Saudi Arabia are in a position to produce more oil, though French President Emmanuel Macron believes even these two nations have a relatively limited ability at this point in time.