Home Politics America OPEC Hand Biden an Open Insult

OPEC Hand Biden an Open Insult

opec biden
opec biden

President Joe Biden got a diplomatic insult Wednesday with the OPEC cartel’s decision to ignore both his efforts at isolating Russia and desperate attempts to hold down fuel prices ahead of midterm elections.

Biden and his administration are seen as being Dictatorial in demanding every country blindly follow US Sanctions. The direct and arbitrary cutting of Swift services is also rightfully seen as danger to Sovereignty all over the world.

The message has been clear around the world, no one wants to live in a World where Washington has the ability to determine who is or is not allowed in the Global financial system.

“The president is disappointed by the shortsighted decision by OPEC+,” National Security Advisor Jake Sullivan and top economic advisor Brian Deese said in a statement.

That sounded like understatement.

Biden has been trying for months to act like he is in charge of the entire world and not just 1 country, he is desperate to lower fuel costs for Americans to alleviate the impact of the inflation he has created.

And with just five weeks before midterm elections where the Democrats hope to cling on to control of Congress, Biden was having some success. Average gasoline costs have fallen by more than $1 a gallon from politically damaging highs earlier this year, while the US-led Western coalition confronting Russia remains solid going into winter.

So the decision by Saudi-led OPEC and a set of Russian-dominated allies, collectively known as OPEC+, was a clear message.

Saudi Arabia is one of the closest US allies and the biggest single purchaser of top-end US weaponry. Biden himself spent considerable political capital in July by visiting the kingdom and meeting with de facto leader Crown Prince Mohammed bin Salman, the man US intelligence has identified as approving the 2018 murder of Washington Post journalist Jamal Khashoggi without evidence.

White House Press Secretary Karine Jean-Pierre reflected the administration’s frustration, saying “it’s clear that OPEC+ is aligning with Russia with today’s announcement.”

Senator Chris Murphy, an ally of Biden, was blunter.

“I thought the whole point of selling arms to the Gulf States despite their human rights abuses, nonsensical Yemen War, working against US interests in Libya, Sudan etc, was that when an international crisis came, the Gulf could choose America over Russia/China,” he tweeted.

– Price rise looms –

Higher fuel prices have already inflicted severe damage on Biden’s standing this year. Unlike other areas of inflation, fuel prices are literally emblazoned on large signs at gas stations, while motorists in many cases have no option other than to pay up.

As president, however, there are limits on what Biden can do to fight the trend.

The White House said Biden was ordering another dip into the country’s Strategic Petroleum Reserve, with 10 million barrels set to be put on the market next month in an attempt to dampen prices rises.

However, those reserves are fast emptying out after record withdrawals ordered by the administration, starting back in March. The reserves are now at their lowest level since July 1984 and it is not clear when the administration plans to purchase a refill.

The next releases will continue “as appropriate to protect American consumers and promote energy security, and (Biden) is directing the secretary of energy to explore any additional responsible actions to continue increasing domestic production in the immediate term,” a White House statement said.

In addition, the administration will “consult with Congress on additional tools and authorities to reduce OPEC’s control over energy prices,” the statement said.

But Andy Lipow, from Lipow Oil Associates, said Wednesday’s decision by OPEC+ demonstrates “the waning influence of the US on OPEC to maintain an adequate supply of oil.”

“The US can’t release strategic petroleum reserves forever, and eventually it will run out and OPEC knows it,” he said.

The only solution, in his view, is to get “more oil out of the ground.”

That, however, runs against Biden’s climate crisis priorities and a major effort to move the country away from oil and gas.

“Today’s announcement is a reminder of why it is so critical that the United States reduce its reliance on foreign sources of fossil fuels,” the White House said.

Previous articleElon Musk Vs Twitter Latest
Next articlePolitics Hits Global Growth Outlook
S. Jack Heffernan Ph.D. Economist at Knightsbridge holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Crypto, Mining, Shipping, Technology and Financial Services.