Financial Times: White House accuses Opec+ of aligning with Russia
Oil production cuts prompt backlash from Washington amid soaring energy inflation
The White House has accused Opec+ of aligning with Russia after Saudi Arabia led the group in agreeing deep oil production cuts, prompting a backlash from countries battling surging energy inflation triggered by Moscow’s invasion of Ukraine.
The Opec+ group said it would reduce production targets by 2mn barrels a day, equivalent to 2 per cent of global supply, following its first in-person meeting in two years in Vienna. The actual cut in output is likely to be closer to 1mn b/d as many weaker members have struggled to hit production targets in recent months.
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WNU Editor: OPEC is seeing western countries impose oil sanctions, oil price caps, and hearing vows to transition away from fossil fuels. What also does not help is the attack on the Nord Stream pipelines, an attack that many in OPEC see (rightly or wrongly) was done by the U.S. on a fellow energy producing state. Of course OPEC is going to circle the wagons and react in the way that they did. They see their economic survival at stake.