OPEC+ will hold another meeting in a few days. There, a decision can be taken to cut further production by one million barrels per day. This is due to weak price developments and dissatisfaction with the Gaza war. The West’s widespread support for Israel angers Islamic countries.
The price of a barrel of oil is currently well below $100. However, this may change soon. Another meeting of the OPEC+ oil cartel will be held on November 26, in which it is reported that a decision will be taken on further production cuts of one million barrels per day. This is due, on the one hand, to weak price developments (for producing countries) and, on the other hand, to dissatisfaction with the Gaza war.
Arab sponsor countries in particular want to set an example, especially since they have not yet intervened directly in the conflict. Most of all, the United States and many European countries’ widespread support for Israel irritates some Islamic countries, Due to which they now want to take other measures. This includes oil shortages and high oil prices. It is also meant to thwart Joe Biden’s efforts to keep fuel prices low until the election in late 2024.
Given that the American middle class is currently struggling due to high inflation, a new increase in oil prices would be another blow to the Biden administration. Republicans, filled with pro-Israel evangelicals, are no better when it comes to conflict — but such a move is enough to alarm Washington. However, it should certainly strengthen US policymakers’ efforts to reduce oil dependence.
(TagstoTranslate)Oil(T)Production cuts(T)Gaza war(T)Israel(T)Oil price(T)OPEC+(T)USA