Opec Ignores US, Keeps Supply Plan in Place

Copyright © 2021 Energy Intelligence Group

Hopes in Washington that Opec-plus would extinguish a red-hot oil market were dashed this week when the producer group opted against increasing output faster than the group had already planned. Opec-plus' decision to maintain its previous arrangement to add supply at a monthly rate of 400,000 barrels per day helped lift benchmark Brent above $80 per barrel and raised questions about how much influence the climate-focused Biden administration has with the Saudi-Russian-led producer group. Energy Intelligence understands that US officials raised concerns about the impact of rising prices on the US economy in direct talks with officials from Saudi Arabia and the United Arab Emirates. For now, it appears that these “friendly” requests fell on deaf ears. Indeed, the energy relationship between Mideast Gulf producers and the US seems to have cooled under Democratic President Joe Biden compared with former President Donald Trump, an oil-friendly Republican who pulled Washington out of the Paris climate agreement.

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