United States tries to pressure OPEC Plus to avert Oil Supply cut -

Washington/ Vienna: A meeting of OPEC, the leading organization of fuel-producing countries, and OPEC Plus, which includes other producing countries, was held on Wednesday. Given the signs of global recession and other factors, a decision may have been taken to cut fuel production in this meeting. However, the United States has started strong efforts to prevent this reduction in fuel production and pressure is being brought upon Middle East nations, which are members of OPEC. It is said that the senior leaders and officials of the Biden administration are putting pressure on the discussion. If the decision to cut is made, the relationship with the US will deteriorate. A leading US media has published news about this. International organizations and economists have been continuously predicting an economic recession in the past few weeks.

Moreover, economic reports from many leading countries, including the United States, have confirmed the same. It is claimed that fuel demand will likely decrease in the wake of a possible recession, leading to a significant fall in fuel prices. Crude oil prices have dropped to $90 per barrel in the last few days. Against this background, the ‘OPEC Plus’ group has started preparations for a significant reduction in crude oil production. Sources said that crude oil production would be reduced by more than 1 million barrels per day.

This cut could cause crude oil prices to bounce back to $100. This could be a shock to the Biden administration. With the mid-term elections in the US less than a month and a half away, the resurgence of fuel prices is a big blow for President Biden and the ruling party. Biden had some success in lowering fuel prices by spending the US’s ‘Strategic Reserve’. A decision by OPEC Plus on this success could turn the tide. Therefore, senior officials of the Biden administration have started putting pressure on some Middle East nations, including the UAE and Kuwait. It includes Treasury Secretary Janet Yellen, National Security Council officials, and the special envoy for energy and State Department officials.

However, the OPEC group and the Middle East nations did not respond much to the efforts made by the European countries, including the Biden administration. The decision of OPEC Plus is influenced by two countries, Saudi Arabia and Russia, and these two countries are not amenable to the pressure of the United States. Therefore, it is said that the US has accelerated the movement to block the decision by putting pressure on other countries.