Saudi Arabia’s latest move to cut crude oil production, despite U.S. please not to do so, should not have surprised Washington, and yet it did
- Oct 10, 2022, 7:00 PM CDT
White House National Security Advisor, Jake Sullivan has changed his tone vis-a-vis Saudi Arabia. Despite repeated pleas from the U.S. that the Organization of the Petroleum Exporting Countries , under theleadership of Saudi Arabia, should not cut its collective crude oil production at its meeting last week it did just that. The White House had made it clear that a cut in crude oil production and the corollary rise in oil prices would lead to three outcomes that it sees as exceptionally dangerous for the world right now.
Disregarding these entreaties from the U.S., and echoed by the major European states, OPEC, under Saudi Arabia, cut its collective crude oil production by a gigantic two million barrels per day . Market expectations had been for a possible cut of around one million bpd, with a very remote possibility of one and a half million bpd, if OPEC decided to ignore all its Western allies’ arguments against a reduction. However, the latest cut is the largest crude oil production reduction since the 9.
Aside from knowing the huge upwards pressure that this historically enormous cut in crude oil supply would place on the global oil price, Saudi Arabia was also fully aware of the political ramifications of the cut for the U.S., for Europe, and for Russia, according to several sources in Washington and Brussels exclusively spoken to bylast week.
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