Biden’s dilemma to get America out of self-immolation oil fire
According to IRNA, an American media outlet in an analysis of the problems facing the government of US President Joe Biden to solve the problem of rising fuel prices in the country after the ban on Russian oil imports and wrote that he now looks at the oil of three Venezuelan countries. , Sewn Saudi Arabia and Iran.
The Associated Press reports that it is unclear whether US diplomacy will be able to bring crude oil into the market quickly enough to solve the current supply problems. According to this analysis, the efforts of the Biden government can at best lead to the stabilization of the crude oil market and prevent the increase of fuel prices in the United States by moving the three countries away from China and Russia, but in the worst case, they will not yield results. The US government will be working with the three governments to help.
However, the Biden government faces many problems in each of the three cases. He has already faced domestic criticism from his allies for calling on Saudi Arabia to increase oil supplies.
For example, Ilhan Omar, a Democrat from Minnesota, tweeted a few days ago: “Our response to Vladimir Putin’s war should not be to strengthen our relationship with the Saudis.” Other members of the Democratic Party have also stated their opposition to the United States’ rapid response to Saudi Arabia and its Crown Prince over oil.
In Venezuela, a high-level delegation visited the country a few days ago for the first time since the end of tensions in Washington-Caracas relations in the 1990s. But if this opening in relations leads to Venezuela supplying oil to the markets, the country will still not be able to increase its oil production to meet the needs after years of political turmoil and weak investment.
Paul Sheldon, an adviser to Global Commodity Insights, said the lifting of direct and secondary sanctions against the Venezuelan state oil company could increase oil production to 400,000 barrels per day in the next few months.
As for Iran, energy analysts say the country could supply more than a million barrels of oil quickly if an agreement is reached in Vienna, but Iran’s oil problem is more likely to be offered to buyers other than the United States.
The Associated Press writes that if the United States allows Russia to trade freely with Tehran, it could pave the way for Moscow to supply its oil to Iran through Iran.