OPEC’s Body Blow to Biden
Consortium NewsOct 11, 2022
The Facts
Pres. Biden on Tuesday warned of "consequences" for US -Saudi relations after OPEC+ announced last week that it would cut its oil production target by up to 2M barrels per day, despite Washington's objections.
While his options and timetable haven't been detailed, the White House stated that the president is willing to work with Congress to reassess the US relationship with Saudi Arabia. A day earlier, some Democrats in Congress urged any cooperation with the kingdom to be suspended.
The Spin
Establishment-critical narrative
The OPEC+ announcement is not only a slap in Biden's face, but underscores the tectonic geopolitical shifts in West Asia and Russia's growing influence. Instead of reflecting on its own failures, Washington is once again resorting to threats, which will only spur the continued evolution of a multipolar world order.
Pro-establishment narrative
The OPEC+ decision poses numerous risks for the free world. Washington must not give in to the pressure and should continue its plan for a price cap on Russian oil. The Biden administration should avoid any short-sighted response in the run-up to the midterm elections. As with the 1973 oil embargo, this production cut could ultimately prove to be a dangerous boon for the oil cartel.
Nerd narrative
There's a 50% chance that the price of oil will be at least $91.8 per barrel by December 2022, according to the Metaculus prediction community
