US believes OPEC can expand oil production: Hochstein
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US Senior Advisor for Energy Security Amos Hochstein says OPEC nations can expand oil production and will do so following the Jeddah Summit, although information from Saudi Arabia says otherwise.
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US President Joe Biden in Jeddah Summit 2022
According to US Senior Adviser for Energy Security Amos Hochstein, the OPEC nations have the opportunity to increase oil output and the US anticipates that they will do so in the next weeks. Hochstein traveled alongside US President Joe Biden on his West Asia trip, which included a stop in Saudi Arabia and participation in the Jeddah Summit.
Hochstein said on Face the Nation CBS show that "based on what we heard on the trip I'm pretty confident that we will see a few more steps in the upcoming weeks," adding, "I believe there is still more room to see additional steps." The senior advisor recalled that OPEC countries had previously agreed to increase oil production in July and August by 50%.
By the end of the year, one million additional barrels per day of private oil sector output are anticipated by US authorities, according to Hochstein. The government may then stop intervening in the oil market's emergency supply, he continued.
Opposite to what Hochstein said, news from Jeddah Summit stated that there has been no such agreement between the US and Saudi Arabia.
In fact, President Joe Biden stated that he expects further oil supply increases from the Kingdom to help tame domestic fuel costs after the visit. However, Saudi Foreign Minister Faisal bin Farhan denied on Saturday much of what US President Joe Biden remarked, most notably about increasing oil production.
“There was no oil discussion at the summit,” said bin Farhan, asserting that Riyadh will do everything necessary to balance out the oil market and that OPEC+ will continue to assess the conditions and do whatever is necessary.
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