Global Oil Prices Surge After OPEC Announces Production Cut
ForbesAPR 2023
The surprise cuts by OPEC+ are ill-advised, as the decision comes just as markets and inflation are recovering. Tensions between the US and Saudi Arabia have been strained since last year when the kingdom refused to pump more. US-Saudi relations will only deteriorate further so long as OPEC+ continues this trend.
Saudi Arabia was looking to offer the US a 500K barrel-per-day deal, but Washington said no. The problem here is simple, and it all lies at the feet of the US government. If America doesn't want to drill its oil in the name of transitioning to green energy, then it shouldn't be mad when OPEC+ does the same thing.