Opec+ production cut could harm US-Saudi relations


This week Opec+ has decided to cut oil production by 2 mln barrels per day. This is the second largest production cut after covid where due to reducing demand Opec+ countries decided to cut 10 mln barrels per day.

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US Administration termed the decision ‘ short-sighted’. Earlier this year Biden visited KSA and met Saudi Prince Mohammad bin Salman and it seemed the relationship between US-Saudi were on the track to recovery however recent oil production cuts show otherwise.

Move to cut production is done to raise prices of Oil in the market in anticipation of recession and slowing global economy. The US alleges the higher oil prices will benefit Russia and hence increase their affordability to fight the war.

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