{"id":481,"date":"2022-06-30T16:33:40","date_gmt":"2022-06-30T16:33:40","guid":{"rendered":"http:\/\/roydadnaft.ir\/English\/?p=481"},"modified":"2022-06-30T16:33:43","modified_gmt":"2022-06-30T16:33:43","slug":"biden-to-ask-gulf-alliance-to-boost-oil-production","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/481\/","title":{"rendered":"Biden to Ask Gulf Alliance to Boost Oil Production"},"content":{"rendered":"
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Joe Biden\u2019s July trip to the Middle East is poised to be a significant moment for gasoline prices, with the US president setting his sights on a promise of higher production from Gulf allies.<\/h2>\n\n\n\n

(Bloomberg) \u2014 Joe Biden\u2019s July trip to the Middle East is poised to be a significant moment for gasoline prices, with the US president setting his sights on a promise of higher production from Gulf allies. <\/p>\n\n\n\n

The stakes are high for the oil market because Saudi Arabia and the United Arab Emirates are the only countries with significant spare capacity to pump crude. Without a pledge from the two OPEC members to boost production, the president would lose a powerful tool for alleviating the economic and political pain caused by high fuel prices.\u00a0<\/p>\n\n\n\n

The trip to Saudi Arabia puts Biden in an awkward position, after he vowed during his campaign to make the kingdom a \u201cpariah\u201d over its human rights record. The president said he wouldn\u2019t specifically ask Saudi King Salman or Crown Prince Mohammed Bin Salman to raise oil production when he sees them on July 16. The broader Gulf Cooperation Council, a forum of largely oil-rich countries along the Persian Gulf, is a more appropriate setting for such a request, he said. <\/p>\n\n\n\n

Read more: Biden\u2019s Saudi \u2018Pariah\u2019 Strategy Crumbles With World Craving Oil<\/p>\n\n\n\n

\u201cAll the Gulf states are meeting. I have indicated to them that I thought they should be increasing production,\u201d Biden said Thursday at a news conference in Madrid following a NATO summit. \u201cI hope we see them, in their own interest, concluding that makes sense to do.\u201d<\/p>\n\n\n\n

Oil fell after Biden\u2019s comments, with West Texas Intermediate futures sinking 3.9% to $105.50 a barrel as of 10:43 a.m. in New York.<\/p>\n\n\n\n

Even if Saudi Arabia and the UAE are willing to assist the US, just how much extra oil the two countries could provide has been questioned by this week by Shell Plc Chief Executive Ben van Beurden and French President Emmanuel Macron. While official data indicates the duo have almost 3 million barrels a day of spare production capacity, deploying this would require them to pump at levels rarely sustained before, if ever. <\/p>\n\n\n\n

Read more: Can Saudi Aramco Meet Its Oil Production Promises?: Javier Blas<\/p>\n\n\n\n

Biden and his top aides have repeatedly said that his Mideast trip is about more than energy \u2014 he cited concerns over the war in Yemen, among other issues. But the surge in gasoline prices in the US has added pressure on the president and Democrats heading into the November mid-term elections. In Madrid, Biden reiterated his view that the price increase is entirely due to \u201cRussia, Russia, Russia\u201d as a result of the war in Ukraine.\u00a0<\/p>\n\n\n\n

Biden said he sees a number of ways to alleviate some of those increases, including through a temporary repeal of the federal gas tax, a measure that would need congressional approval. But he also said that Americans may have to continue enduring higher-than-usual fuel prices for a time. <\/p>\n\n\n\n

Separately on Thursday, the Organization of Petroleum Exporting Countries and its allies ratified their plan to boost oil production by a further 648,000 barrels a day in August, completing the return of supplies halted during the pandemic. The group, which is led by Saudi Arabia, deferred discussions about its next move for another day, with the next meeting scheduled for Aug. 3.<\/p>\n\n\n\n

The US sees the OPEC+ supply hikes, which were expanded by 50% at the group\u2019s previous meeting on June 2, as a first step that will be followed by a further production increase, Amos Hochstein, the State Department\u2019s senior adviser for energy security, said in a Bloomberg Television interview on Wednesday.<\/p>\n\n\n\n

\u201cAnnouncing additional supplies a few weeks ago was step one,\u201d Hochstein said. \u201cI\u2019m very hopeful that you and I can have this conversation about step two sometime in the near future.\u201d<\/p>\n

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