Oil predicted problems due to Biden's victory
OPEC leaders fear problems for the oil industry due to the victory of Democratic candidate Joe Biden in the US presidential elections. It is argued that Biden's expected foreign policy moves could derail an OPEC + deal to cut oil production in the wake of the coronavirus pandemic.
OPEC leaders fear problems for the oil industry due to the victory of Democratic candidate Joe Biden in the US presidential elections. This is reported by Reuters, citing sources in the cartel.
It is argued that Biden's expected foreign policy moves could derail an OPEC + deal to cut oil production in the wake of the coronavirus pandemic. For example, the new US president could ease sanctions against Iran and Venezuela, which will lead to the release of their oil to world markets and a drop in energy prices.
Also, one of the countries participating in the OPEC + deal is Russia, which Biden has already called the main global threat to the United States. “There is a risk that Russia will leave OPEC +, and then the deal will collapse. It was Trump who contributed to Russia's participation, ”the source claims.
Biden has already named Russia the main global threat to the United States. During his election campaign, he also pledged to reconsider American relations with Saudi Arabia, which is considered the leader of OPEC.
Outgoing US President Donald Trump harshly criticized OPEC early in his term, but later changed his rhetoric and facilitated the OPEC + deal. A source in the cartel said the organization "will miss our friend Trump."
OPEC + countries have been executing a deal to cut oil production since May in order to support the cost of raw materials and prevent storage overflows. In the first three months, the restrictions were 9.7 million barrels per day, and from August to the present - 7.7 million. The return to the Libyan market has seriously changed the situation.
From January 2021, they wanted to reduce the restrictions to 5.8 million barrels per day, but the second wave of coronavirus could force the members of the organization to reconsider plans. This possibility has already been discussed in Russia.