Riyadh wants OPEC+ to reduce oil production as part of the Washington energy policy to prevent oil prices from falling and stabilize oil markets that have fallen into “schizophrenia. 

Participants in the OPEC+ agreement increased oil production by 648,000 barrels a day in July and August. Amos Hochstein, a senior adviser to the State Department on energy security, said on the eve of the OPEC+ summit on August 3that he was expecting the oil ministers’ meeting to be optimistic and that it was expected to increase oil production by at least 500,000 barrels per day. However, the participants of the August summit unexpectedly increased production for the first month of autumn by only 100 thousand barrels per day.

US energy policy 2022

The White House has started talking about the failure of the US energy policy 2022 in the Middle East. According to the Wall Street Journal, another proof of another failure of US diplomacy in the region was the statement by Saudi Arabia’s energy minister, Prince Abdulaziz bin Salman. On August 22, he advised the participants of the OPEC+ agreement not to increase oil production in September but instead to cut it to stabilize the market and prevent further price decreases. Saudi Arabia, OPEC’s informal leader, was supported by several members of the oil cartel who were also ready to cut oil production.

Prices on “black gold” in recent weeks amid falling economic activity, the threat of a recession and increased uncertainty really went down and fell below a hundred dollars per barrel. Despite their rise of $1.3 per barrel after Prince Abdulaziz’s statement, the current price of oil at $98 is 17% lower than the price at the beginning of June.

“OPEC+ has commitments and also has the flexibility and means to overcome such challenges, including reducing oil production,” Prince Abdulaziz said Monday night.

Earlier, we reported that the U.S. set a record for oil and petroleum product exports.