You United States do not expect the Saudi Arabia immediately boost oil production and are keeping an eye on the outcome of the next meeting of the OPEC+ (Organization of Petroleum Exporting Countries) on August 3, the US national security adviser said on Friday (15).
The statement lowers expectations about US President Joe Biden’s visit to the kingdom.
He is due to land in Jeddah this Friday, on a trip designed to redefine the United States’ relationship with the country and to address issues such as energy supply, human rights and security cooperation.
“I don’t think you should expect a specific announcement here bilaterally, because we believe that any further action taken to ensure that there is enough energy to protect the health of the global economy will be done in the context of OPEC+,” said Jake Sullivan.
Still, the US can secure a commitment that OPEC will ramp up production in the coming months, hoping to provide a signal to the market that supplies, if needed, are coming.
Saudi Arabia, along with the United Arab Emirates, holds most of the idle capacity within the Organization of Petroleum Exporting Countries and other exporters (OPEC+) group, which includes Russia.
Biden is expected to have direct meetings with Saudi and UAE heads of state during his trip.
The kingdom, however, has repeatedly indicated that it would not act unilaterally.
Brent oil prices are trading at just under $100 a barrel, after hitting a 14-year high of $139.13 in March.
Investors are weighing new Covid-19 lockdowns in main importer China and recession fears.
“Saudi Arabia prefers to manage the market through OPEC+, not through unilateral moves,” wrote Ben Cahill, a senior fellow at the Center for Strategic and International Studies, in a recent analyst note.
“Saudi Arabia’s Energy Minister Abdulaziz bin Salman has consistently emphasized the importance of OPEC+ cohesion, including a pivotal role for Russia,” Cahill said.
Anwar Gargash, diplomatic adviser to UAE President Sheikh Mohammed bin Zayed, also said on Friday that his country wanted a more stable oil market and would comply with OPEC+ decisions.
“The UAE is very much in favor of supporting and following the US discussions with Saudi Arabia on oil because we are part of the largest OPEC group, OPEC+, so we would very much like to see more stability in the market and the ability to produce more. We will follow the group wherever it goes,” Gargash said.
Source: CNN Brasil
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