• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 9 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 11 hours How Far Have We Really Gotten With Alternative Energy
  • 8 days They pay YOU to TAKE Natural Gas
  • 5 days What fool thought this was a good idea...
  • 8 days Why does this keep coming up? (The Renewable Energy Land Rush Could Threaten Food Security)
  • 3 days A question...
  • 14 days The United States produced more crude oil than any nation, at any time.

The White House Does Not Expect Arab States to Weaponize Oil

The United States is confident that the Arab states will not use oil supply as a weapon as they have done in the past, White House energy security adviser Amos Hochstein told the Financial Times in an interview published this weekend.

“Oil has been weaponised from time-to-time since it became a traded commodity, so we’re always worried about that, working against that, but I think so far it hasn’t,” Hochstein told FT.

According to the Biden Administration’s top energy adviser, the U.S. and the global oil market are managing the double geopolitical jeopardy of the past year – the Russian invasion of Ukraine and the Israel-Hamas war – “fairly well.”

“We have two active wars in the world, one involving the world’s third-largest producer [Russia], the other in the Middle East where missiles are flying near where oil is produced, and yet prices are near the lower point of the year,” Hochstein told FT.

Last week, Hochstein said that the United States would tighten sanctions on Iran’s oil industry amid the Israel-Hamas conflict, aiming to bring Iranian exports down by more than 1 million bpd.

In the early days of the conflict, the Arab states and the OPEC+ production group dismissed Iran’s call for Islamic countries to impose an oil embargo on Israel and its supporters over the war with Hamas in Gaza.

However, market speculation is intensifying that the OPEC+ ministers could decide to make deeper production cuts beginning next year when they meet in the November 25-26 weekend.

The key reason for a possible deeper cut would be the most recent price slide to $80 a barrel Brent, market participants and analysts speculate. Growing anger at the Israeli bombardment of Gaza could also play a part in an OPEC+ decision to withhold more supply from the market, some analysts argue.

ADVERTISEMENT

At any rate, Saudi Arabia – the world’s top crude oil exporter and OPEC+ leader – is expected to attribute any extra cuts to the oil market situation, not the conflict in Gaza, sources close to Saudi Arabia’s thinking have told FT.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • fredric longabard on November 20 2023 said:
    Yeah, when was the last time this "White House" made a correct call?
  • Mamdouh Salameh on November 20 2023 said:
    The Arab members of OPEC and OPEC itself have no intention of using oil as a weapon as the did very successfully in 1973. Thar is why they poured cold water on Iran’s call for an embargo against Israel and those who support it.

    Three reasons for this. The first is that the global oil market has undergone huge transformation since 1973. The second reason is that by embargoing Israel and the United States they will also be harming many friendly countries. A third reason is that the bulk of Israel’s oil needs comes from Azerbaijan.

    Dr Mamdouh G Salameh
    International Oil Economist
    Global Energy Expert

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News