Russia and its partners’ decision caused new issues for the United States

Moscow, April 3 – The decision of OPEC + members to reduce oil production until the end of the year threatens the Americans with a rise in inflation and gasoline prices, and for Washington this is fraught with a further aggravation of relations with Saudi Arabia, the Associated Press writes.

The oil-producing countries’ decision, called “unexpected” in the article, could lead to an increase in prices in the United States and other countries, which are already experiencing rising global inflation. In addition, this step may contribute to filling the Russian budget.

And the Associated Press notes that this “could further strain Riyadh’s relationship with the United States, which has urged Saudi Arabia and other allies to increase production as they seek to lower prices and undermine Russia’s finances.”

Kevin Book, managing director of Clearview Energy Partners, said the production cuts could push US gasoline prices around 26 cents a gallon, in addition to seasonal increases in the summer. Altogether, the cost of conventional gasoline in the United States could rise by summer from the current $3.5 a gallon to more than four.

According to Bock, although the production cut represents only about one percent of daily global consumption, the repercussions of this decision could greatly affect the market value of “black gold”.

Earlier, OPEC + countries, including Russia, announced a voluntary cut in oil production until the end of the year. For Russia and Saudi Arabia, this figure will be 500 thousand barrels per day, for Kazakhstan – 78 thousand barrels per day. In addition, the United Arab Emirates (by 144,000 barrels per day), Oman (by 40,000 barrels), Kuwait (by 128,000 barrels), Iraq (by 211,000 barrels), and Algeria (by 48,000 barrels) have agreed to cut oil production. According to trading data, and against the background of the decision of the OPEC + countries, global oil prices accelerated by more than 5%.