Biden on Oil Cuts: It’s Not as Bad as You Think
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US President Joe Biden reacted to the decision of eight countries, including Russia, to voluntarily cut oil production. It “won’t be as bad as you think,” he told reporters in Minnesota (quoted by Reuters).
The decision of OPEC + was also commented by the head of the US Treasury Janet Yellen. She called it “an unconstructive step.” “I think this is an unfortunate action that OPEC has decided to take. I’m not sure yet how this will affect prices… Obviously, this is not a positive factor for global growth. And that adds uncertainty and pressure at a time when inflation is already high,” added Ms. Yellen, speaking at Yale University.
Saudi Arabia and other major Arab oil producers – the UAE, Iraq and Kuwait – decided on April 2 to support Russia’s efforts and unilaterally cut production. We are talking about a reduction of 1 million barrels per day from May until the end of the year, while Russia will extend for the same period the reduction in production by 500 thousand barrels already begun in March. This led to an increase in the price of oil. According to Western analysts, an increase in oil prices will push inflation and make it even more difficult for the US Federal Reserve to find a balance between increasing the key rate and maintaining financial and economic stability.
Read more about the reduction in production – in the material “Kommersant” “Foreign countries did not let us down”.
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