Recently, affected by the energy crisis, international oil prices have been “rising”. Brent crude oil reached more than 86 US dollars per barrel at the end of October, setting a three-year high; US WTI crude oil also once exceeded 85 US dollars per barrel. A new high in seven years. Although the latest data shows that as of the close of trading on November 4, WTI crude oil has fallen below $80, it is still at a high level.
Affected by high international oil prices, the price of refined oil in the United States has soared. In late October, the price of oil in some areas even reached US$7.59/gallon, which has caused a heavy burden on residents’ lives, and some even could threaten economic recovery. Therefore, Biden has been trying to find ways to curb the rise in oil prices and also “begged” to join OPEC+.
Last week, Biden stated at the G20 Summit that as international oil prices continue to rise, OPEC+ members including Saudi Arabia and Russia insist on not increasing oil production. This approach is inappropriate and is an important reason for the sharp rise in fuel prices in the United States and around the world. He expressed regret for such “stubborn” practices.
According to reports on November 5, the White House spokesperson once again stated that OPEC+, which has the ability to put more oil into the market, should take action as soon as possible to ease international oil prices. In order to get OPEC+ to nod, the United States also put a “big hat” on it, saying that high oil prices will hinder global economic recovery. If OPEC+ does not act, then it will be the “culprit” that hinders economic recovery.
But OPEC+ did not take the U.S. warning seriously and directly issued a statement saying that in December this year the alliance will comply The plan formulated in July this year was to increase production by 400,000 barrels per day. It can be said that OPEC+ once again “ignored” the requirements of the United States.
Market analysts say that OPEC+ insists on not increasing production. On the one hand, it is because it estimates that the current supply shortage in the oil market will turn into a surplus by next year, and it is necessary to control potential oil production. Stay alert to changes in demand; on the other hand, because oil prices remain high, it is a good opportunity for oil-producing countries to make money. Oil supply exceeds demand, and oil-producing countries also have an advantage in bargaining.
It’s no wonder that Biden has asked OPEC+ to increase production again and again. A report on November 5 pointed out that as of last week, compared with the average level before the epidemic, U.S. commercial crude oil Inventories have fallen by 18 million barrels, and in the most severe areas, they have even fallen by 25 million barrels.
There are also reports that, in addition to strategic petroleum reserves, U.S. crude oil and refined oil inventories have fallen to their lowest levels since 2014. It can be said that US oil inventories are close to depletion.
But U.S. shale oil producers do not seem to understand Biden’s begging for OPEC+. Pioneer Natural Resources, one of the shale oil and gas exploration companies, even pointed out directly: If we want to increase domestic oil production, it would be more effective to withdraw restrictions on domestic oil drilling companies as soon as possible rather than asking OPEC+.
It is reported that due to the surge in shale oil production in the past 10 years, the United States once became the world’s largest oil producer. However, after Biden took office, in order to get rid of the United States’ dependence on fossil energy, A number of measures, including drilling restrictions, were immediately implemented, also known as “anti-oil policies.”
In addition to withdrawing various restrictive measures, the United States may have two other methods. One is to release the strategic oil reserves, and the other is to re-implement the oil export ban, but the former is usually only used to In response to emergencies such as natural disasters, the latter also needs to be used with caution due to the huge impact. </p
