Media: OPEC+ production cut will increase economic shocks in the EU

BEIJING, Oct 6 – PRIME. The decision of the countries participating in the OPEC + deal on a large-scale reduction in oil production will increase pressure on the administration of US President Joe Biden and lead to new economic shocks in Europe, but the countries of the Middle East no longer have the desire to follow Washington’s orders, writes the Chinese state newspaper Global Times.

OPEC+ during a face-to-face meeting in Vienna on Wednesday decided to cut oil production immediately by 2 million barrels per day from November, taking the levels agreed for August as a reference point.

“The United States is shifting its strategic focus from the Middle East to the Asia-Pacific region. Against this background, the countries of the Middle East can no longer rely on geopolitical protection from Washington to the same extent as before, so they have no incentive to unconditionally follow it orders,” Hu Qimu, deputy secretary general of the forum for integrating the digital and real economies, told the newspaper.

Referring to analysts, the publication notes that if OPEC helps the United States in reducing oil prices, this will have a negative impact on their own economy, because then oil revenues in general will decrease, but OPEC “has no desire to pay for US strategies,” emphasizes newspaper.

“The US economy is becoming more and more self-centered, as the foundation of their economic development rests on the decline of other countries, for example, on the flight of capital from other countries to the United States. Now that they do not take into account the interests of oil producers, the latter are beginning to tire of pandering to the United States” Hu Qim said.

According to experts, the OPEC + decision will lead to a further increase in oil prices, in addition, it will add pressure on the Biden administration on the eve of the midterm elections, which is already facing criticism from voters due to ineffective work to contain rising commodity prices. products.

Rising oil prices will create further economic shocks for Europe, which is already suffering from inflation and currency depreciation.

During a press conference following the OPEC+ meeting, UAE Energy Minister Suheil al-Mazroui said that the alliance was concerned about the lack of investment in the industry, as well as falling demand for oil. In September, Brent prices fell to their January levels and remained firmly below $90 per barrel in anticipation of a global recession.