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OPEC+ decided to cut a significant portion of its oil production amid White House disappointment

OPEC+ decided to cut a significant portion of its oil production amid White House disappointment

By عبد السلام

Published: October 5, 2022

Members of the Organization of the Petroleum Exporting Countries (OPEC) and their partners within the "OPEC+" alliance on Wednesday agreed on a significant production cut, which sparked anger in the United States, which confirmed that the decision will harm countries already suffering from high crude prices.

The organization, which includes 13 countries and its ten allies led by Russia, reported that during their meeting in Vienna, an agreement was reached to cut production by two million barrels per day starting from November.

This is the largest cut since the peak of the COVID-19 pandemic in 2020.

This move could lead to an increase in crude oil prices, which will exacerbate inflation that has reached record levels in decades in many countries and contribute to the slowdown of the global economy.

Saudi Energy Minister Abdulaziz bin Salman said after the first in-person meeting of alliance members since March 2020 that the priority of "OPEC+" is "maintaining a sustainable oil market."

However, this step sparked condemnation from U.S. President Joe Biden, who made a controversial visit to Saudi Arabia in July partly aimed at pressuring for increased oil production amid rising fuel prices.

The timing of the decision is also bad for Biden's political agendas, as it comes before the U.S. midterm elections next month.

The White House said in a statement signed by National Security Advisor Jake Sullivan and Chief Economic Advisor Brian Deese that Biden "is disappointed by the short-sighted OPEC+ decision."

The statement added that the production cut will harm countries "already suffering" from high prices while "the global economy deals with the ongoing negative impact" of the Russian attack on Ukraine.

White House spokesperson Karine Jean-Pierre said the decision "is a mistake," adding, "It is clear that by today's decision, OPEC+ stands with Russia."

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