- By Ely Márquez
- (General Dispatch) – Energy Minister Abdulaziz bin Salman told OPEC that the revolution that the US had with the former Trump administration has stalled, and the organization is once again taking back power in the oil market.
- Although the US started with the ambitious project of becoming energy independent since the Republican campaign of 2008, the idea was a violent development of the country’s energy resources and thus not to depend so much on OPEC.
- Since the USA started using fracking as a method of extracting oil, it has been able to promote its energy independence and the increase in supply has also caused prices to fall drastically.
- The fall in oil prices was advantageous for the US, politically, Iran was severely affected by cutting its revenues, and Saudi Arabia was forced to look for new buyers urgently.
- Abdulaziz said that OPEC will be reactivated after the disaster left by the pandemic since last year, Russia has been trying to increase oil production for fear that it would trigger future oil prices and awaken the ambition of rival producers.
- Now, if OPEC raises the price of oil now, later it will not be able to worry about US production coming from Texas, Oklahoma and North Dakota, although some experts say that this type of decision should be taken with caution and not underestimate rivals.
- The Arab News media said that after the economies begin to reactivate after the blockage of the coronavirus, the demand for oil will increase, but the prices may be maintained due to the large inventories that could not be exported in the middle of the pandemic.
Adittional Information:
Arab News: The end of ‘Drill, baby drill?’ What analysts are saying about OPEC+ oil output extension
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