Egyptian economist Mustafa Abdel Salam said in an interview with RT that the OPEC + coalition led by Saudi Arabia and Russia managed to gain a foothold in the global energy market and draw a new map for the oil market.
The expert stressed: “The OPEC+ coalition led by Saudi Arabia and Russia managed to impose itself on the global energy market, draw a new map of the oil market and practically confirm that it does not revolve in the orbit of the United States. States, like the OPEC organization, are a traditional entity that includes oil exporting countries.
He explained: “This success has manifested itself in several situations, the most recent of which was the decision by the OPEC+ coalition on Monday to implement new cuts in oil production by 1.66 million barrels per day starting from May next year, and the announcement of Saudi Arabia, the second The largest oil producer after the US will cut production by 500,000 barrels per day on Sunday, putting pressure on the global oil market.
He added: “The decision of the OPEC+ alliance will shock the world’s largest economies, especially those countries that suffer from high inflation, as in the case of the US and Europe, or rely heavily on energy to power their industry. and manufacturing sectors, or to oil-consuming countries, as is the case with half of the countries of the Arab countries, Turkey, India, Brazil, etc.
He pointed out that: “The new huge cut in oil production, which was decided today, came despite the intense pressure that the Joe Biden administration has been putting for several months on major oil producers led by OPEC +, and its request to the countries of the Persian Gulf. increase production more than once, rather than cut it, to increase supply in the markets. That is, until the wave of inflation subsides and prices fall, including high fuel prices that worry the American citizen, and the Biden administration fears its negative impact on the results of the upcoming presidential elections.
And he added that OPEC + withstood European criticism and American pressure, which sought to split it using several tools, including threatening countries that maintain economic and oil relations with Russia, subjecting them to economic sanctions, and more than once accusing the coalition of side of Moscow.
In conclusion, the expert said that: “Biden is in trouble because of the OPEC + decision to cut oil production rather than increase it, and countries that import petroleum products from gasoline and diesel are in an even greater predicament, especially with a shortage of dollar resources needed to finance fuel imports from abroad, and the expectation that the price of a barrel of oil will rise to $100.”
Source: RT