Demand for US to raise baton of 'NOPEC' against OPEC Plus emerges -

Washington: OPEC Plus countries have decided to cut crude oil production by 2 million barrels per day to stop the crashing fuel prices in the international market. This is likely to push fuel prices to $110 per barrel. The United States has reacted strongly to this decision taken on the initiative of Saudi Arabia and Russia. A demand is gaining momentum in the US Senate that the Biden administration should raise the baton of ‘NOPEC’ against this decision of ‘OPEC Plus’. If this demand is accepted, the Biden administration will have the authority to take legal action against oil companies from OPEC Plus countries, including Russia and Saudi Arabia.

Moreover, there has been a global fuel crisis following the Russia-Ukraine conflict. The United States had increased its activities taking cognisance of the dilemma of European countries that depend on Russia for fuel. Against this backdrop, the ‘No Oil Production and Exporting Cartels’ (NOPEC) bill was introduced in the US Senate on the 5th of May. The ‘NOPEC’ bill was passed to protect the interests of US consumers and industry if fuel prices were to flare up given the war.

The bill has not yet been converted into law. But if this happens, the security guarantee given to the OPEC Plus member countries and the fuel companies in these countries will be revoked. Also, the Biden administration will be authorised to take action against these companies that increase fuel consumption under ‘NOPEC’. The US Attorney General may take legal action against the heads of companies in Saudi Arabia, Russia and other OPEC Plus member countries. It was also warned at the same time that this would further strain the relationship between the United States and Saudi Arabia.

However, two days ago, OPEC Plus announced a decision to cut fuel production significantly, and senior senators are demanding that the Biden administration convert NOPEC into law. US senators indicate that if the NOPEC law is passed, action can be taken against Saudi Aramco and Russia’s Lukoil.

Meanwhile, US National Security Adviser Jake Sullivan has already warned that President Joe Biden is upset with the decision taken by OPEC Plus. Sullivan warned that steps would be taken to loosen OPEC’s grip over fuel prices. Therefore, the Biden administration could raise the baton of NOPEC against Saudi, Russia and other OPEC-plus countries. Also, the Biden administration can take a very aggressive decision to withdraw the protection provided by the United States to the Middle East. But the United States will also have to bear the consequences of this action. This will jeopardise US interests in the Middle East and may even lead to the United States losing its influence in the Middle East. Also, the unity of Russia, Saudi Arabia, and other oil-producing countries in the Middle East will strengthen. Therefore, the Biden administration will have to take a huge risk while making decisions on this front.