Rai Alyoum: Saudi Arabia seeks to distance itself from America by reducing oil production.
Following the new decision of OPEC+ to reduce oil production again, Rai Elium newspaper announced in a report that the decision of OPEC+ members is not separate from the decision of Saudi Arabia, a country that is gradually moving away from its former ally, the United States, by adopting policies.
According to the report of Tasnim International News Agency, some members of OPEC+ announced yesterday that they have reduced their oil production more than their previous commitments. In this way, in addition to continuing to reduce oil production by 2 million barrels of OPEC+ members, Saudi Arabia and OPEC+ member countries will voluntarily reduce their oil production by another 1.6 million barrels.
The voluntary reduction of oil production by these countries will begin in May 2023 and will continue until the end of 2023.
Oil prices rose more than 6 percent on Monday after the OPEC+ alliance announced a 1.16 million barrel production cut from May to the end of this year. Thus, the total production reduction of this coalition reaches 3.6 million barrels per day, which is equivalent to 3.7% of global demand.
According to Rai Alyoum, some economic reasons forced Saudi Arabia and the Persian Gulf countries and Iraq to announce a reduction in oil production by more than one million barrels per day. However, this decision of the OPEC+ members is not separate from the decision of Saudi Arabia, a country that is gradually moving away from its previous ally, the United States, by adopting policies.
The member countries of OPEC+ reduced their oil production again, and this is somewhat surprising, because they had previously announced that they had no desire to reduce oil production again, and this is despite the fact that their decision led to confusion in the United States.
The first reason for the reduction in oil production could be to support the stability of the oil market and keep the price of oil above 80 dollars amid the fear of reduced demand due to the turbulent conditions of the global economy.
It seems that the second decision to reduce production, which was made after the previous reduction of OPEC+ last year and with the opposition of the United States, has come to an end and the price of Brent crude oil increased by 7% and the price of a barrel of oil reached 85 dollars.
The United States of America, which has repeatedly called for an increase in oil production to reduce prices, has been unhappy with this new decision, as the spokesperson of the White House National Security Council added in a statement that the news to reduce oil production is not reasonable given the uncertainty in the market.
