Oil prices surged to more than $100 a barrel on Monday after President Joe Biden left Saudi Arabia over the weekend, failing to secure a commitment from the Kingdom to boost output.
The idea of OPEC+ boosting oil supply wasn’t even presented during a weekend meeting between Biden and other Arab leaders, according to comments by Saudi Foreign Minister Prince Faisal bin Farhan Al Saud.
Biden refuted the claims, but Monday’s price surge tells a different story. Biden’s inability to convince Saudi Arabia to produce more oil has resulted in another price surge in the midst of an energy crisis.
Oil prices rise above $100 a barrel as Biden fails to secure an oil output deal with Saudi Arabia https://t.co/dWqKxDnyK4
— World News Guru (@worldnews_guru) July 18, 2022
“Traders got one clear message from Biden’s recent visit to Saudi Arabia, during which President Biden spoke to a number of Arab leaders,” market analyst Naeem Aslam told Guardian.
“The message is that it is OPEC+ that makes the oil supply decision, and the cartel isn’t remotely interested in what Biden is trying to achieve,” Aslam said.
“OPEC+ will continue to control oil supply, and one country alone cannot determine the oil supply — at least that is the message that traders have taken from Biden’s visit to Saudi Arabia,” he said.
Biden claimed Friday that the Kingdom shared his urgency to boost supply. He said he expects the Saudis to take move forward on the shared goal.
“The Saudis share that urgency, and based on our discussions today, I expect we’ll see further steps in the coming weeks,” Biden said.
However, Saudi officials said that any decision on boosting output would have to occur within the framework of OPEC+. The syndicate of petroleum-producing nations will hold its next meeting on Aug. 3.
In a report from The Hill, administration officials played down expectations for any immediate increases in Saudi oil production.
According to the report, White House national security adviser Jake Sullivan said that the administration does not expect any concrete decision to increase production for a number of weeks.
Russia, the world’s second-largest oil producer, is a member of OPEC+. Biden has continually sought to block Russian energy from global markets as part of the sanctions against President Vladimir Putin after he invaded Ukraine.