Oil prices set to skyrocket again after Saudis, OPEC, rebuff Biden and announce production cuts

It has become apparent that after less than two years in office, Joe Biden’s ineptitude and dementia have cost the United States a wealth of credibility and respect built up during Donald Trump’s four-year term.

Nowhere is this more apparent than in Biden’s dealings with Saudi Arabia and other OPEC nations.

The oil-producing giant and other cartel members have completely rebuffed our fragile president after he traveled there recently and pleaded for them to boost oil production to drive down prices and help more Democrats stay in office after next month’s midterms.

As reported by CNBC:

A group of some of the world’s most powerful oil producers on Wednesday agreed to impose deep output cuts, seeking to spur a recovery in crude prices despite calls from the U.S. to pump more to help the global economy.

OPEC and non-OPEC allies, a group often referred to as OPEC+, decided at their first face-to-face gathering in Vienna since 2020 to reduce production by 2 million barrels per day from November.

Oil prices had tumbled to roughly $80 a barrel after rising to more than $120 early in the summer months, causing gas prices in some parts of the U.S. to spike to more than $7 a gallon, a new record. The average price rose to the high four-dollar-a-gallon range and in most places, drivers were paying over $5 a gallon. Diesel fuel also rose exponentially and has yet to come down much, leaving farmers and others like transport companies stuck with higher costs that were ultimately passed on to consumers in the form of inflation.

The scheduled November production cut seeks to reverse the slide in prices, despite repeated requests from Biden that the group raises production to lower prices ahead of the midterm elections (that Democrats were already fearing).

The rebuke just goes to show that few nations take the U.S. and its current leader seriously, especially after it appears that the Biden regime was responsible for sabotaging the Russian-built Nordstream 1 and 2 pipelines.

The Biden regime could solve the problem easily — do what Trump did, and turn the American energy industry loose again. But no. Democrats are hypocrites, so while they preach about electric cars and renewable energy at home, they go overseas to beg others to produce more fossil fuels.

Following the rebuke, the White House issued a statement.

“In light of today’s action, the Biden Administration will also consult with Congress on additional tools and authorities to reduce OPEC’s control over energy prices,” the White House said, according to CNBC.

The administration statement added that the OPEC+ announcement served as “a reminder of why it is so critical that the United States reduce its reliance on foreign sources of fossil fuels.”

Clearly, however, the push by the regime is politically motivated, as Mike Shelby, CEO of private intelligence firm Forward Observer, reported in a note to subscribers on Wednesday.

“Biden’s approval ratings have improved as the price of oil has fallen, and lower gas prices are likely a major part of the Democrats’ midterm strategy. With the price of oil heading back up, Democrats could lose some steam heading into November, as inflation and the economy top voter concerns,” he wrote.

“With OPEC+ set to cut production, Biden’s potential oil and gas export restrictions would further harm European energy heading into winter, which has interesting geopolitical implications. Additionally, lower oil prices had a major impact on the Consumer Price Index, so higher oil prices could bolster October inflation. Those numbers will be published on 10 November, two days after Election Day,” he added.

With nearly two-thirds of Americans living paycheck to paycheck, likely paying for food and gasoline increasingly on credit, the White House as well as the Democrats controlling Congress are about to be blamed for the worsening state of the economy by losing at the polls.

Sources include:

CNBC.com

ForwardObserver.com