US lobbies Middle East allies to vote against OPEC+ oil production cut
The US Treasury argues that a decrease in OPEC+ oil production will have disastrous precautions on the US and has begun lobbying their Middle East allies to vote against that decision at the meeting this Wednesday.
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OPEC+ could potentially vote to cut oil production (Reuters)
The US is concerned that OPEC's probable decision to reduce oil production will pose serious problems for the country and may even be interpreted as a hostile act, according to the US Treasury report.
According to the report, OPEC+ members will convene on Wednesday to discuss the potential of reducing oil output by up to 1-2 million barrels per day or more due to decreased demand caused by decreasing economic activity around the world.
On Tuesday, the report cautioned that a great deal is at stake for the US at OPEC and that a vote to limit oil output would be a "total disaster" for the nation.
US President Joe Biden's administration assembled its top energy, economic, and foreign policy officials and entrusted them with lobbying Middle East allies such as Saudi Arabia, the United Arab Emirates, and Kuwait to vote against decreasing oil production.
To persuade its OPEC allies, the US proposed to purchase back up to 200 million barrels of oil from its OPEC partners.
Biden's administration has been using the US Strategic Petroleum Reserve. The proposed purchase of the 200 million oil barrels will be to support that reserve, read the report.
Read more: Oil price increases to 3%; OPEC+ may cut output significantly
