US President Joe Biden left Saudi Arabia without the minimum expectations of global energy markets, which suggested that they would accept his call to increase oil production in order to calm the markets.
No statements related to the global energy market were issued by the Gulf states, with the exception of Saudi Arabia – the godmother of the “OPEC” alliance – specifically Crown Prince Mohammed bin Salman.
In the final statement of the Jeddah Summit for Security and Development, it was reported that the leaders praised the existing efforts of “OPEC” to achieve stability in global oil markets, in a manner that serves the interests of producers and consumers, and supports economic growth.
The leaders welcomed the recent decision of OPEC members to increase production for the months of July and August, and expressed their appreciation for the leading role of Saudi Arabia in achieving consensus among the coalition countries.
American media, along with investment bank strategists there, began talking about Biden’s failure to obtain oil commitments from Gulf leaders during the Arab summit in Jeddah.
American energy markets are aware that the main objective of his visit to the Gulf states is to ask their leaders to continue pumping more oil, which would lead to lower gas prices in the United States.
Biden fears that rising fuel prices in the US market will bring him down during the midterm elections scheduled for later November.
It is sufficient for the US Energy Information Administration to publish oil price developments during the era of the last 3 American presidents to show the sharp increase during Biden’s term, a black mark in his current era.
Saudi Arabia has made it clear through the Saudi Crown Prince and on the air that it will not be able in the future to increase production above 13 million barrels per day.
Currently, Saudi Arabia’s production is about 11 million barrels, and it has an immediate ability to increase production to 12 million barrels, and about 13 million barrels per day by 2027, after the completion of the current development work.
And while the pro-Biden American media saw Saudi statements about increasing production to 13 million barrels per day as a victory for the president, in reality it is not.
On May 16, 2022, Saudi Energy Minister Prince Abdulaziz bin Salman said that the kingdom is on its way to increase its oil production capacity by more than one million barrels per day to more than 13 million barrels per day by the end of 2026 or the beginning of 2027.
OPEC estimates that the daily demand for crude oil by 2027 will be approximately 105 million barrels per day, which means that producers need additional investments in the oil industry to meet demand.
But before this date, Biden needs to pass the midterm elections successfully, as expectations indicate that he will resort to the last card in the energy sector, represented by the abolition of the federal tax on fuel, which amounts to approximately 18.4 cents per liter.
The US president’s clash in the energy sector was not limited to the Gulf countries, but the production of American energy companies had a share in this, as he accused them of profiting in a difficult global economic circumstance.
On Saturday evening, Saudi Foreign Minister Prince Faisal bin Farhan told reporters: “We listen to our partners and friends from all over the world, especially oil-consuming countries, but in the end, OPEC follows the market situation and provides energy supplies as needed.”