When we finally notice that World War III has arrived, there’s a good chance that we’ll look back at its formative months and find plenty of evidence of collusion – particularly among the axis of authoritarianism that is beginning to form.
For instance, as the United States looks to OPEC to help with global gasoline prices, member states such as Saudi Arabia and Russia, (two nations undeniably on the authoritarian side of what seems like an inevitable global conflict), will have a say in whether or not our wish is granted.
A group of some of the world’s most powerful oil producers on Wednesday agreed to impose deep output cuts, seeking to spur a recovery in crude prices despite calls from the U.S. to pump more to help the global economy.Advertisement - story continues below
OPEC and non-OPEC allies, a group often referred to as OPEC+, decided at their first face-to-face gathering in Vienna since 2020 to reduce production by 2 million barrels per day from November.
Energy market participants had expected OPEC+, which includes Saudi Arabia and Russia, to impose output cuts of somewhere between 500,000 barrels and 2 million barrels.
The move appeared to be a bit out of the norm, and comes just as the US began making calls for assistance.
The move represents a major reversal in production policy for the alliance, which slashed output by a record 10 million barrels per day in early 2020 when demand plummeted due to the Covid-19 pandemic. The oil cartel has since gradually unwound those record cuts, albeit with several OPEC+ countries struggling to fulfill their quotas.Advertisement - story continues below
Oil prices have fallen to roughly $80 a barrel from more than $120 in early June amid growing fears about the prospect of a global economic recession.
The production cut for November is an attempt to reverse this slide, despite repeated pressure from U.S. President Joe Biden’s administration for the group to pump more to lower fuel prices ahead of midterm elections next month.
Biden will now be forced to release 10 billion barrels of oil from American reserves in order to ease the pain at the pump.