2023-11-18 17:12:13
Leaders in the Gulf feel pressure from their people because of the war on Gaza, according to the newspaper (Getty)
Sources told the Financial Times on Friday evening that the OPEC+ coalition of oil exporting countries and Russia is moving to reduce oil production once more to raise prices. Oil prices reached $77 per barrel this week.
Four people familiar with Saudi government policy told the Financial Times that it is very likely that Riyadh will extend its reduction by one million barrels per day, until at least the spring. The voluntary measure, which is scheduled to expire at the end of this year, was introduced last summer as an interim step, in addition to broader cuts by OPEC.
Saudi Arabia currently produces regarding 9 million barrels per day, compared to a maximum of regarding 12 million barrels per day.
According to the report, further cuts, which may inflame tensions with the United States, are being discussed by OPEC+ as the organization prepares to meet in Vienna on November 26.
While the decline in oil prices is the main reason if the reduction is made, members also feel dissatisfied with the war launched by Israel in Gaza, and the humanitarian crisis there, according to the newspaper.
One person familiar with the matter said that an additional OPEC+ production cut of up to one million barrels per day may be on the table.
The Financial Times quoted another person close to prominent Gulf figures in OPEC as saying: “You should not underestimate the level of anger that exists and the pressure that leaders in the Gulf feel from their people because of the war on Gaza.”
The source added that there would be no repeat of the oil shock of the 1970s, when Arab countries halted their exports to the West, but added: “People have become complacent regarding the possibility of tightening oil supplies to send a hidden message, which will be well understood on the streets, and in Washington, D.C.” “.
US President Joe Biden faces a tough battle for re-election next year, perhaps once morest his predecessor Donald Trump, and the White House is already struggling to convince voters that the country’s economy is healthy.
In addition, Russia raised its gasoline exports, which were implemented in mid-September, indicating a surplus supply of regarding 2 million metric tons, it said.
The lifting of export restrictions follows a similar move to suspend restrictions on pipeline diesel exports during the first week of October.
According to the Oil Price Bulletin, the Russian Ministry of Energy said that saturation of the domestic market had been ensured over the past two months, leading to a surplus of automobile gasoline. The ministry said it may reimpose an export ban if this surplus disappears.
Russia restricted diesel and gasoline exports on September 21, in an attempt to stabilize domestic fuel prices in the face of rising prices and oil shortages, with crude oil rising and the Russian ruble weakening.
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