Oil rises on mixed signals from Biden’s trip to Saudi Arabia
Officials say the trip won’t result in more production, but Biden says it will: File Image/Pixabay
To the surprise of no one, except perhaps some mainstream information pundits, it was reported on Friday that WE President Joe Bidenit’s a very bumpy trip to Saudi Arabia won’t end with the kingdom pumping in more oil to ease a global shortage – and it’s driven oil prices up 2.5%.
After a US official told the media that an immediate increase in Saudi production was not expected, and with the Organization of Petroleum Exporting Countries (OPEC) apparently unable to increase crude production, Brent rose $2.06 settle at $101.16 per barrel, while West Texas Intermediate gained $1.81 settle at $97.59.
But despite the official throwing cold water on Biden’s Saudi excursion, Biden, who previously said the trip was not intended as a mission to get the Saudis to ramp up production, said kept a brave face and said supply increases were coming anyway: “I’m doing everything I can to increase supply from the United States of America, which I expect , gone happen, [and] the Saudis share this urgency…..and based on our discussions today, I expect to see further steps in the coming weeks.”
We base this on fundamentals, not speculation, not hysteria, not geopolitics.
Adel Al-Jubeir, Minister of State for Foreign Affairs, Saudi Arabia
Adel Al JubeirSaudi Minister of State for Foreign Affairs, said: “We are assessing demand and working in consultation with other OPEC and OPEC+ oil producers to ensure we have adequate supplies.
“We’re basing this on fundamentals, not speculation, not hysteria, not geopolitics.”
While Biden’s critics are sure to add his trip to the long list of other disappointments racked up by the Democratic leader, Joseph McMoniglegeneral secretary of the International Energy Forumremarked that the trip was good for oil markets because “it’s good for market stability and energy security when the two major producers meet.”
McMonigle added that many relations between the two countries led to the president’s visit, “so I think a lot can come out of this trip…the bottom line is that we need more energy from all sources. , not just oil”. and not just OPEC.
Meanwhile, the global energy market paused on Friday when Farhat ben Qadarathe new president of National Petroleum Companyannounced on Friday the lifting of force majeure and the end of all closures of all oil fields and ports of Libya.
Bin Qadara said in an interview with Bloomberg, “The first step I will take is to return to previous oil production rates before the shutdown, and that will be in a week.”
Libya’s energy facilities have been a major cause of the nation’s conflicts, with different groups shutting down oil production for various political and economic demands, but Bin Qadara stressed that the NOC under his leadership will cooperate and work in coordination with the government and the Ministry of Petroleum.