Some sources said Riyadh was ready to increase its oil production if Russian oil production fell due to sanctions imposed by the Ukraine war.
According to Pak Sahafat News Agency, The Financial Times quoted some sources as saying that Saudi Arabia was ready to send oil to the market if Russian oil production fell due to sanctions.
At the same time, Bloomberg reported that the price of a barrel of oil fell below $ 113 dollars after Saudi Arabia prepared to inject oil into the market in the event of a reduction in Russian oil production due to sanctions imposed by the Ukraine war.
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It should be noted that Saudi Arabia’s stated positions were initially neutral in the Ukraine war, but Riyadh’s resistance to Biden’s request to increase oil production was in fact in Russia’s favor, because it helped the country use energy leverage against Western governments and increased its bargaining power, but in the last few months after the Ukraine war, there have been signs in US-Saudi relations that the Biden-Mohammed bin Salman administration’s relations have melted and cooperation on regional issues has resumed, which could eventually Cooperation between the two sides in the war in Ukraine.
These developments appear to have been the result of a recent secret visit by CIA Director William Burns to Riyadh. In fact, Biden’s government gave concessions to Saudi Arabia in order to gain its consent to remove Saudi Arabia from neutrality in the Ukraine war and to include it in imposing comprehensive Western sanctions on Russia by increasing the oil production ceiling, and Saudi Arabia gave the necessary green light.
If Saudi Arabia succumbs to pressure from the Biden government to increase production ceilings and exceed quotas, internal competition between OPEC and non-OPEC will resume, and with rising production, oil prices will fall back into decline; Especially after the Ukraine war, the hopes for world economic growth in the post-corona period have weakened, and published statistics show a slowdown in economic growth of governments, which also reduces the need for oil consumption.
In fact, oil prices soared after OPEC Plus was formed with the participation of OPEC and non-OPEC producers, led by Saudi Arabia and Russia as two major oil-producing countries, and now the Biden government is asking Saudi Arabia to The increase in oil production ceiling has targeted the survival of OPEC Plus.