During the Christmas that just passed last month, Americans were not happy at all: they couldn’t buy turkey, they couldn’t afford beef, and they didn’t even dare to drive out for a walk. Gasoline was ridiculously expensive; everything was going up. , only one number is falling, and that is Biden’s approval rating. For this reason, he had no choice but to play the “release card”, and international oil prices also fell in response to the situation. However, as we entered the new year, the rebound in oil prices made Biden want to cry.
2022 has just begun, and the global crude oil market is already bustling. Brent oil has now returned to above the US$85 mark, and US crude oil is also hovering around US$83. Last week, international oil prices rose for the fourth consecutive week, hitting a record high of 10 US dollars last year. The longest streak of gains in months.
In just half a month, international oil prices have risen by 10% this year, which is too worrying for Biden. You must know that last year, US crude oil and Brent oil only rose by 55% and 50% respectively. Seeing that oil prices have risen so sharply, global investment banks have said that $100 a barrel of oil is really not a wishful dream, and the dream can come true this year.
Saudi Arabia, who was leisurely strolling by, asked everyone to relax. The country’s energy minister said that he has always been very satisfied with the price of crude oil. Whether it goes up or down, Saudi Arabia will never suffer a loss anyway. He also said that the United States has the right to release oil reserves. Saudi Arabia is not worried that oil prices will rise too much.
Saudi Arabia’s subtext is that I don’t want to worry too much about whether oil prices will rise or not. As long as the United States can’t stand it, it will take action to control oil prices. There is no need to worry about it. It seems that the previous release of oil reserves by the United States, Japan, South Korea, India, and the United Kingdom really made Saudi Arabia very angry, and it is still bringing this up to “cynise” it.
Indeed, as soon as the United States played the “reserve release card”, Saudi Arabia was furious. Since the United States is so awesome and does not take Saudi Arabia seriously at all, it suggested that OPEC+ suspend production increases and let it fend for itself.
It happened that Omicron suddenly struck, triggering extreme panic in the market and causing oil prices to plummet. In the end, Saudi Arabia had no choice but to shake hands with the United States and make peace, agreeing that OPEC+ would increase production by 400,000 barrels per day in January this year according to the original plan, but there was a condition. With regard to the withdrawal clause, OPEC+ can adjust crude oil supply at any time without prior notification.
As time went by, everyone’s panic about Omicron basically subsided, and Saudi Arabia began to become tough again. It can be seen that OPEC+’s increase in production is a false proposition. As long as Saudi Arabia and other countries are willing, it is not difficult to increase production to meet the standards. After all, after Saudi Arabia and Russia broke up in March 2020, they could increase production to 1 million barrels per day in one month. It is obvious that during the period of high oil prices, OPEC+ was not in any hurry to increase production excessively and help the United States lower oil prices.
The surge in energy prices has also caused the United States to face the biggest “tragedy” in 40 years: in December 2021, the country’s CPI rose by 7% year-on-year, the largest year-on-year increase since June 1982. Saudi Arabia and OPEC+ cannot be blamed for this situation. The United States itself also bears a large responsibility. It was not the country’s crazy money printing that pushed up global inflation.
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