On Wednesday, the Organization of Petroleum Exporting Countries (OPEC), which includes Saudi Arabia and Russia, announced that it will be cutting oil production by 2 million barrels per day, the biggest cut since the pandemic began, in a move that will drive up worldwide oil prices.
In a statement, the group explained, “In light of the uncertainty that surrounds the global economic and oil market outlooks, and the need to enhance the long-term guidance for the oil market, and in line with the successful approach of being proactive, and pre-emptive, which has been consistently adopted by OPEC and non-OPEC Participating Countries in the Declaration of Cooperation, the Participating Countries decided to” cut “the overall production by 2 [million barrels per day] from the August 2022 required production levels, starting November 2022.”
The news comes shortly after President Biden visited Saudi Arabia in July as part of a diplomatic effort to discuss energy production and other matters. At the time, Biden greeted the Saudi crown prince Mohammed bin Salman with a fist bump, drawing backlash from those who pointed out his human rights violations. For example, the Saudi ruler notoriously approved the killing of Saudi journalist Jamal Khashoggi in 2018 and defended the genocide of Uyghur Muslims in China in 2019, saying that “China has the right to carry out anti-terrorism and de-extremization work for its national security.”
Following Biden’s visit in July, the price of oil rose due to his failure to make a deal with OPEC+ and the resulting expectation that the group would cut oil production.
“The price of oil rose on Monday after the US president, Joe Biden, came away from talks in the Middle East without an agreement on raising supply,” The Guardian reported at the time. “Biden had hoped to secure a promise from Saudi Arabia to increase its output of oil, which could lead to an easing of global supply pressures.”
The Biden administration responded to OPEC+’s decision to cut oil production by saying it was “shortsighted” and claiming that Biden’s “work here at home, and with allies around the world, has helped to bring down U.S. gas prices.” However, it should be noted that the price of gas is still about 50% higher than it was when Biden entered office as a result of his policies suppressing domestic oil production, which also caused the United States to be more dependent on OPEC+.
As Representative Steve Scalise (R-LA) explained on Twitter, “Let’s be clear about what happened: 1. Biden destroyed America’s oil/gas industry and made us dependent on OPEC again. 2. Biden begged OPEC to produce more oil. 3. OPEC is doing the opposite—cutting output by 2 million barrels a day.”
“Total failure,” he concluded. “OPEC is laughing at him.”
Let’s be clear about what happened:
1. Biden destroyed America's oil/gas industry and made us dependent on OPEC again.
2. Biden begged OPEC to produce more oil.
3. OPEC is doing the opposite—cutting output by 2 million barrels a day.
Total failure. OPEC is laughing at him.
— Steve Scalise (@SteveScalise) October 5, 2022
