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Timing is the key to the Gulf replacing Russian oil

EXPERT COMMENT

The consent by the Saudi leadership to consult the US on global oil market issues is a sign Riyadh is playing its own game. Moscow’s interests are not a factor.

US president Joe Biden’s recent trip to Saudi Arabia as a part of his Middle Eastern tour was not a failure as the Russian propaganda tried to present it.

On the contrary, the US and Saudi Arabia seem to come to certain terms regarding their vision of the global oil market prospects and, most probably, steps which can be taken by Riyadh to mitigate the negative impact of high oil prices on Western economies.

While the details of US-Saudi negotiations are kept secret, the oil market expects that on 3 August – when OPEC+ members meet to discuss production quotas – Saudi Arabia may try to persuade the cartel to increase supplies.

The precedent of the OPEC+ going above initially agreed production limits already exists as OPEC+ members already decided to increase their oil output in July and August above the initially promised 432,000 barrels per day (bpd).

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Channel website: https://www.chathamhouse.org/

Original article link: https://www.chathamhouse.org/2022/07/timing-key-gulf-replacing-russian-oil

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