OPEC, the oil exporters organization controlled by Saudi Arabia, decided to cut oil production hence increasing prices. A massive blow for both Europe and the United States.
A difficult road awaits the West as we slowly go towards the winter. With World tension reaching peaks never seen in 30 years, Europe and the United States grind to retrieve the necessary resources to fund their advanced economies.
A task that seemingly becomes more difficult by the day, as OPEC (Organization of Petroleum Exporting Countries) decided yesterday to cut oil exports by 2 million barrels/day. This move will surely increase oil prices in the midst of an already tense energy war between the West and Russia.
Indeed, the decision of OPEC comes hours after that of the EU Commission to implement a price cap on oil imports, a measure that will be discussed within the 8th package of sanctions against Moscow. There is still no guarantee that such a price cap will be implemented, as EU countries like Hungary might not be on board.
But OPEC’s decision to cut on oil exports also comes at a crucial moment for the United States. In a little more than a month, Joe Biden’s administration will be put at a test in the midterm elections. And if the White House had so far managed to stabilize oil prices carefully taking from their own reserves, OPEC’s meeting might be a final and decisive blow.
The West vs the rest
Quoting from Huntigton’s “The Clash of Civilizations” it seems that the West is in a showdown against the rest of the World. OPEC is de facto controlled by Saudi Arabia, a brutal dictatorship ruled by Mohammad Bin Salman.
MBS (how the Saudi dictator is usually referred to) used to be a close ally of the United States, but the constant and ever so brutal war crimes led the West to distance itself. Too bad that Saudi Arabia is the third exporter of oil on the planet, and with Russia out of the equation everyone started courting MBS again.
The Saudi prince found itself in a powerful position as Europe and the United States went from dictator to dictator in a desperate research for oil. Recently, Joe Biden (who had always vocally scorned MBS) tried everything he could to avoid an oil cut by Saudi Arabia. The White House deployed a legion of diplomats and lobbyists to Mecca, to no avail.
This oil exports cut by OPEC will likely increase prices of oil, increasing inflation even further. Next year, the major economies of the World will most likely face a recession. Another one of those “once in a lifetime” economic crises that millenials already experienced twice in their lives.
Obviously, the recession will not benefit Saudi Arabia and OPEC either. But ruthless dictators seem to have little interest for the long-term. A thing they seemingly share with Western democracies, if they continue to finance dictatorship to maintain their expensive lifestyles.
