The apparent deterioration in US-Saudi relations comes amid a recent worldwide trend toward de-dollarization with key, ascendent geopolitical actors, including but not limited to China, Russia, India, and Brazil all taking steps to reduce their use of the U.S. dollar.
According to Reuters, the total of recent cuts by the OPEC+ group, which includes Russia, has increased to 3.66 million bpd and accounts for 3.7% of global demand.
According to the company, the tax on ‘excess profits,’ whatever boon it might be for the EU’s coffers in the short term, is ultimately “counterproductive,” since it would scare off prospective investors.
The White House has warned that China’s attempts to exert its influence worldwide, as it has just done with what was traditionally a U.S. regional ally, were “not conducive” to the international order.
Spokesman Dmitry Peskov said that Moscow had prepared for this price cap—a controversial, and according to some experts, ineffectual mechanism that would ‘force’ Russia to sell its oil for less than current market value.
In a move that left the White House “disappointed,” OPEC+ announced a cut of its oil production by 2 million barrels a day, which amounts to 2% of global oil production. The political and economical fallout may have far-reaching consequences.
