Riyadh is ready to increase oil production in exchange for a defense agreement with the United States – Kommersant
[ad_1]
Saudi Arabia told the United States that it will increase oil production at the beginning of 2024 if prices are high, reports The Wall Street Journal (WSJ) citing American and Saudi officials. According to the newspaper, in this way Riyadh wants to gain the favor of Congress for a deal on defense and Israel.
According to the WSJ, the agreement with the United States will provide a defense pact for Saudi Arabia, as well as possible cooperation in the nuclear field. In exchange, Riyadh will have to recognize Israel.
US officials visited Saudi Arabia in September and explained that it would be more difficult to gain support in Washington due to rising oil prices. Officials in Riyadh said they would be guided by market conditions when making decisions. They argue that this is not a long-term agreement to reduce prices.
In October 2022, OPEC decided to cut production by 2 million bpd. In May 2023, a group of countries led by Saudi Arabia announced a further reduction in production by more than 1 million bpd. On September 5, Saudi Arabia and Russia said they planned to extend existing cuts until the end of 2023. In November, Russia and Saudi Arabia may reconsider amount of additional reduction.
About the demand for oil in the world – in the material “Kommersant” “IEA records underfilling”.
[ad_2]
Source link
