Reuters: The increase in OPEC+ production is an insult to Biden

According to the Fars International Economic Group to Reuters, OPEC plus It is set to increase production levels by 100,000 barrels per day, which analysts say is an insult to the atmosphere. Bidenthe American president after his visit to Saudi Arabia and asking Riyadh to increase production.

This increase is equivalent to 86 seconds of demand for oil in the world in one day, and after weeks of speculation that travel Biden to West Asia and Washington’s permission to sell missile defense systems to Riyadh and the UAE will bring more oil to the market.

thunder Al Kadhiri“This number is so low that it is meaningless,” said the managing director of the Energy, Climate and Climate Division at the Eurasia Group. Physically, it is a marginal point. As a political gesture, it’s almost insulting.”

OPEC statistics show that this increase of 100,000 barrels is one of the lowest production increase figures since the introduction of OPEC quotas in 1982.

OPEC plus, including OPEC member countries and other oil producers such as Russia. This group from the beginning of the outbreak coronavirus and the decrease in demand, they reduced their production by 10 million barrels to prevent the increase of oil in the market. By improving the conditions and reducing the prevalence coronavirusthis group gradually started to increase production.

OPEC plus In its last meeting at the beginning of July, it decided to increase production and have a monthly production of 648 thousand barrels per day in the months of July and August. The previous production increase of this group was 432 thousand barrels per day.

This group decided tonight to increase the production level by 100 thousand barrels per day.

It was supposed to be OPEC plus to make up for all the reduction in its production that it implemented in 2020. But OPEC plus As of June, it was almost 3 million barrels per day behind its quota due to sanctions by some members and a lack of investment in other countries that killed its ability to increase production.

On the other hand, the decrease in oil supply from Russia due to sanctions and lack of excess capacity has caused the price of energy to increase sharply and cause an increase in the inflation rate.

According that the US inflation rate has reached the highest figure in the last 40 years and popularity Biden Hinged on lower gas prices, the US president traveled to Riyadh last month to improve relations with Saudi Arabia, which have been strained since the murder of journalist Jamal Khashoggi.

Washington on Tuesday approved the sale of a $5.3 billion missile defense system to the UAE and Saudi Arabia, but has yet to lift a ban on arms sales to Riyadh.

OPEC plus whose next meeting is scheduled for September 5, announced in a statement, According Due to severe supply disruptions, limited excess capacity requires it to be used with great caution.

At the same time, an OPEC resource plus “(This decision) is to appease the US, but not so big as to upset Russia,” he told Reuters.

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