Staff Reports
Concerns over the weakening economic situation in the United States have led Saudi Arabia, the world’s leading oil producer, to take strong action. Saudi Arabia has announced a new round of cuts in oil production, building on two previous rounds of cuts by OPEC+.
BREAKING: US Drivers To Pay The Price For Biden's Weak Leadership As Saudis Drastically Cut Oil Supply……https://t.co/pcpcSAaLgT
— 🇺🇸🇺🇸Josh Dunlap🇺🇲🇺🇲 ULTRA-MAGA (@JDunlap1974) June 5, 2023
Starting in July, Saudi Arabia will reduce its oil output by 1 million barrels per day. This decision is sure to influence discussions among the Organization of the Petroleum Exporting Countries and other oil-producing countries to extend the previous rounds of cuts into next year. Saudi Energy Minister Abdulaziz bin Salman said his nation will do “whatever is necessary” to stabilize the crude market after slumps that have allowed U.S. consumers to fill their tanks at reduced rates.
The move is causing concern among analysts, who predict that higher prices will soon be seen at the pump. “Gas is not going to become cheaper. If anything, it will become marginally more expensive,” warned Jorge Leon, senior vice president of oil markets research at Rystad Energy.
The decision by Saudi Arabia to reduce their oil production is due to the uncertain demand in the months ahead, not only due to economic difficulties in the U.S. but also in Europe and China. Saudi Arabia has cited weak economic performance by China as the communist nation works to dig out from under its “zero Covid” policy.
The reduction in oil production comes as Americans prepare for the traditionally heavy season of summer driving, and Republican candidates for president are sure to cite this as yet another hardship caused by President Joe Biden’s mismanagement of the economy. Polls show that the majority of Americans blame Biden for the nation’s ongoing struggles with increasing unemployment and persistent inflation. Furthermore, a recent poll indicated that former President Donald Trump has a remarkable 71% approval rating for his handling of the economy, something he is sure to emphasize as he prepares to take on Florida Governor Ron DeSantis and other challengers.
It is clear that the Biden administration’s policies are having a damaging effect on the U.S. economy, and the cut in oil production by Saudi Arabia is just the latest evidence of this. The coming months will be critical for the economy, and Americans will be looking for leadership from a president who knows how to turn things around.
