October Third Week Newsletter of Middle East Business News
OPEC+ Oil Cut Is Mostly Illusion as Saudis Face Kazakh Crude Return - Bloomberg
– Ministers from the OPEC+ group of oil-producing countries agreed to cut their collective output?target by 2 million barrels a day from November
– Estimates of OPEC+’s?September production suggest that, collectively,?it’s?lagging the planned level by about 3.6 million barrels a day.
– When the new targets come into effect on Nov. 1, only eight countries will be required to pump less crude
– The total reduction required of them is just 890,000 barrels a day.
UAE Ruler to Meet Putin in Russia Tuesday as War Escalates
– Putin and Sheikh Mohammed Bin Zayed Al Nahyan will discuss regional and international issues of common interest, the UAE’s state-run WAM agency said
– Dubai’s former finance chief, Nasser al-Shaikh, said on Twitter that the UAE ruler was going to try to “defuse a European war” that no one expected would reach this level of escalation.
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Biden Should Hit Saudi Arabia Over Oil Snub Where It Really Hurts - Bloomberg
– Foreign policy heavyweights like Senator Chris Murphy are musing about the wisdom of selling arms to the Saudis. Three members of the House of Representatives have introduced legislation calling for the withdrawal of American troops and missile defense systems from the kingdom — and, for good measure, from the United Arab Emirates. Others threaten?to revive the so-called “NOPEC” bill, which would target the entire cartel for antitrust action.
– NOPEC is also opposed by the?American Petroleum Institute?and the?U.S. Chamber of Commerce, which have warned that U.S. companies abroad may face retaliatory action if it becomes law.
– Blocking military sales to the Saudis and withdrawing the American security umbrella from the kingdom would hurt?US arms makers and empower?Iran, which represents a far greater threat to the world economy than $90 oil.
Why Did Saudi Arabia Defy Biden to Keep Oil Prices High - Bloomberg
– US attempts to revive a nuclear deal with Riyadh’s regional foe Iran, Saudi Arabia’s participation in Yemen’s war, and what Gulf states perceived as a lack of protection from Washington against attacks from Iranian-backed proxies, have all contributed to tensions and a growing divergence in views.
– Faced with a choice between supporting the global economy at the behest of the US, and risking their own, the Saudis chose themselves. And other Gulf states did too.
– Gulf officials argue that they need to balance their ties with both the US and Russia, which plays an important role not only in energy markets, but also in regional conflicts from Syria to Libya
– They’re also suspicious of US attempts to punish Russia with tools such as price caps on its energy exports, moves that effectively shift pricing power to energy buyers from the sellers.