OPEC+ production cuts: President Biden's diminishing space for manoeuvre

[hemanthaa@mail.com + 64]

With the production cuts announced by the OPEC+, the US and its long-term, Middle-Eastern ally, Saudi Arabia, are drifting towards a diplomatic impasse, something that neither can afford to trivialize, given the current, global, geopolitical landscape: the war in Ukraine, the nuclear saber-rattling between Russia and the West, Iran's alleged supply of Kamikaze drones to Russia, to name but a few.

As the midterm elections are just three weeks away, analysts are watching President Biden's next move in stabilizing the price of crude oil: will he go nuclear by resurrecting NOPEC bill and releasing more SPR to dilute the ambitions of the OPEC+? 

By a strange coincidence, meanwhile, both the UAE and Saudi Arabia have decided to donate millions of dollars to Ukraine. Is it a strategic move to appease the US and avoid a retaliation by the latter for not heeding its call to boost the production?

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