Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Local sources: The Israeli force, which crossed into southern rural Damascus, has reached the town of Qatana, located just 10 kilometers from the Syrian capital
Local sources: An Israeli ground unit, comprising more than 15 military and armored vehicles, carried out an incursion into southern rural Damascus from the occupied Syrian Golan
Belgian court orders regional government to stop military exports to Israel, Belga reports
Latin Patriarchate in occupied al-Quds: The Holy Family Church in Gaza was subjected to Israeli shelling, resulting in injuries, including Father Gabriele Romanelli
Al Mayadeen’s correspondent in France: Georges Abdallah’s lawyer has officially informed him of the court’s decision granting his release
Al Mayadeen's correspondent in South Lebanon: One was martyred in a raid that targeted the town of Kfour, Nabatieh District
Al Mayadeen's correspondent in South Lebanon: One was martyred in an Israeli drone strike that targeted a truck in the town of Naqoura
Defense Attorney: Lebanese activist George Ibrahim Abdallah will be released on July 25
Georges Abdallah's defense attorney: The decision to release Lebanese activist Georges Ibrahim Abdallah will be issued in a few minutes
The French judiciary decided to release Lebanese activist Georges Ibrahim Abdallah after 41 years of detention

Caught in a pickle: OPEC+, Saudi Arabia, the oil price war

  • By Al Mayadeen English
  • Source: Agencies
  • 1 Aug 2022 12:04
3 Min Read

It seems improbable that a case where the member states of the alliance could return to pre-Covid levels, due to the runaway prices and pressure from Washington.

  • x
  • Caught in a Pickle: OPEC+, Saudi Arabia and the Oil Price War
    Minister of Energy Prince Abdulaziz bin Salman Al-Saud and Russian Energy Minister Alexander Novak in Vienna (CNBC)

The alliance of oil exporters, OPEC+, is due to establish a new strategy at their meeting on Wednesday, with an intense focus on their responses regarding soaring crude prices.

Directed by Saudi Arabia, the 13 core members of OPEC, in addition to the 10 states in OPEC+, spearheaded by Russia, find themselves between a rock and a hard place.

Following the severe output cuts agreed to in spring 2020 as a consequence of the backlash of the plunge in demand caused by the coronavirus pandemic, it still seems improbable that a case where the member states of the alliance could return to pre-Covid levels, even if on paper, due to the runaway prices and pressure from Washington.

Read more: Biden does not regret calling Saudi Arabia 'pariah' statement

Biden's visit to the Kingdom; was it a show and no tell?

US President Joe Biden departed Washington and traveled to Saudi Arabia in mid-July despite his promise to make the country an outcast in light of the 2018 murder of journalist Jamal Khashoggi.

Related News

Turkey to supply natural gas to Syria after grid connection

Algeria to boost oil production as part of OPEC+ output hike

The rather controversial journey to the Kingdom was partially to persuade Riyadh to further alleviate the production taps to maintain the market’s stability and avoid the destitute rise of inflation, however, the fruit of the meeting will demonstrate if the journey was compelling or just for show.

Read more: No handshake for MBS: Biden bumps fists with Saudi Crown Prince

"The US administration appears to be anticipating some good news but it's hard to know whether that's based on assurances during Biden's trip or not," stated Craig Erlam, analyst at Oanda, to AFP.

Stephen Innes of SPI Asset Management declared, "It wouldn't be a surprise to see the Saudis announce something that Biden could tout as a win to voters at home….”

Reaching pre-COVID levels is a shot in the dark

The London-based research institute, Energy Aspects, stated that OPEC+ could resort to adjusting its current agreement to maintain the increase of crude production capacities, with analysts cautioning otherwise. The alliance has already continuously failed to reach the production rates allotted and has constantly struggled to go back to pre-pandemic volumes.

OPEC+ will have to consider the fact that Russia’s interests – those of a key player in the alliance – fall paradoxical to those of Washington.

"Saudi Arabia has to walk a fine line," warned Tamas Varga, analyst at PVM Energy.

The task entails permitting the US to save face while simultaneously pacifying Moscow to assure the balance of the alliance. Any decision reached on Wednesday’s meeting will have to be unanimous, which may prolong the duration of the meeting, which is anticipated to occur at approximately 1300 GMT on Wednesday (or 3 pm at the Vienna HQ) through videoconference.

"Any new OPEC+ deal aimed at further ramping up supplies is likely to be met with market skepticism, considering the supply constraints already evident within the alliance," says Han Tan, chief market analyst at Exinity in the UAE.

  • inflation
  • Russia
  • Saudi Arabia
  • OPEC

Most Read

An Israeli soldier abandons an excavator during an ambush by al-Qassam Brigades. Arabic text reads "The moment the soldier fled", July, 10, 2025 (Al Qassam Military Media)

Israeli media rue al-Qassam footage, alarmed by fighters among troops

  • Politics
  • 11 Jul 2025
This satellite image from Planet Labs PBC shows damage after an Iranian attack at the al Udeid Airbase outside of Doha, Qatar, June 25, 2025 (Planet Labs PBC via AP)

Satellite images show Iran attack damaged US comms dome in Qatari base

  • Politics
  • 11 Jul 2025
Ukraine’s Corporate Carve-Up Collapses?

Ukraine’s Corporate Carve-Up Collapses?

  • Analysis
  • 11 Jul 2025
Credible reports, including some from Israeli media itself, indicate that Tel Aviv had pinned its hopes on what can only be described as a delusional plan. (Al Mayadeen English; Illustrated by Batoul Chamas)

Jebraily: Iran strikes rewrote regional deterrence rules - Exclusive

  • MENA
  • 15 Jul 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
Fire at new Iraqi mall kills at least 77 people
Miscellaneous

61 people killed as fire engulfs new mall in Iraq's Wasit

Colombia's President Gustavo Petro delivers a speech during a two-day conference on the Israeli war on Gaza, in Bogota, Colombia, Wednesday, July 16, 2025
Politics

Colombia's Petro says to part ways with NATO, cites bombing complicity

A person wearing graduate robes is detained by police across the street from the main gates of Columbia University, Wednesday, May 21, 2025, in New York. (AP)
Politics

Columbia yields to federal pressure, adopts IHRA to regain $400M funds

Members of a French military flight crew talk on the tarmac at France's military air base in Dakar, Senegal, between flights toward the presumed site of the crash of a missing Air France flight Tuesday, June 2, 2009 (AP)
Politics

French army exits Senegal, as president advances post-colonial reforms

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS