OPEC Plus’ response to the US Strategic Reserves Liberation Program

According to Fars News Agency’s International Economics Group, quoting Oil Price, OPEC plus He strongly warned Japan, the United States, China and South Korea that they would respond appropriately if millions of barrels of oil were released from their strategic reserves.

Although OPEC plus He did not specify a figure, but will likely slow down his plan to increase production to make up for the extra barrels that will be added to the market.

History has shown that OPEC members plus They tend to do anything to maintain their market share and keep prices in the ideal range. Russia and Saudi Arabia in 2020 just before the outbreak coronavirus In the world, they had entered a war in the production and export of oil. This caused the market to be filled with surplus oil and prices to fall because they could not agree on a market strategy.

The result of this dispute was devastating for the market because it was soon forced to reduce demand due to the prevalence coronavirus Buckle.

So it is not far-fetched to imagine this recent OPEC threat plus Which has targeted most of America, is a futile threat.

Representatives of OPEC plus According to Bloomberg, the release of millions of barrels of oil from the strategic reserves of large oil consumers is not in the interests of market conditions.

OPEC plus It has been announced for a month that the market will soon face a supply surplus and has warned the oil markets not to rush to increase production.

But there is a lot of pressure on consumer countries because of the high price of gasoline and it is increasing; Especially in the United States, where gasoline prices are often directly linked to voter support for the current government.

OPEC plus He will meet next week to decide on the process of increasing his production.

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