Because US politicians are trying to break the world oil cartel now

To become law, the bill must go through the entire Senate and the House, then be signed by the President. White House spokesperson Jen Psaki said the administration is concerned about the “potential implications and unwanted consequences” of the legislation. You said the White House is still studying the bill.

A CNN survey released Wednesday showed that a majority of Americans think Biden’s policies have hurt the economy, while 8 out of 10 say the government isn’t doing enough to fight inflation.
Only Saudi Arabia and the United Arab Emirates have the necessary reserve capacity to ward off any shocks caused by a Russian shortage immediately. OPEC members refused to substantially increase production, opting instead stick to a series of gradual production increases agreed with Russia.
Frustrated by Riyadh’s refusal to listen to US calls for more oil, the president’s party politicians have pushed him to get tougher on Riyadh. Last month, nearly three dozen Democrats in the House asked Biden to “recalibrate” his relationship with Saudi Arabia, calling him a bad strategic partner. according to reports.
Biden is near the tipping point with the Americans on the economy
“We are not schoolchildren to be treated with a carrot and a stick,” said elderly Saudi prince Turki Al-Faisal. in a recent interview. He blamed the US’s own energy policies “for the state they are in”.
While the NOPEC bill has tried unsuccessfully to make their way through Congress earlier, today’s landscape is very different, said Robin Mills, founder and CEO of Qamar Energy in Dubai.

Mills told CNN why American politicians are making a new attempt to crush OPEC:

How is this attempt different from previous ones?

There have been various versions of this since 2000, and it appears whenever oil prices are high. It never passed and never had a lot of traction. This time, in the government, he has gained more ground, partly around Russia.

Biden is also under political pressure from inflation. There are a few thousand politicians to blame OPEC for the high oil process.

How have Saudi Arabia and other OPEC states responded to such attempts in the past?

They have always lobbied against it and will do it again. I’m not sure how strong their lobbying power is right now. They aren’t particularly popular in Washington right now, but they do have their own lobbyists.

[There is] also the US oil lobby, API [American Petroleum Institute] and other organizations that have generally been against this bill because benefit from it by OPEC by limiting production and keeping prices high. So they tend to oppose this bill on the ground.

How do you think oil producing states will respond to the bill?

I don’t think Middle Eastern countries can continue to limit production and refuse to gamble. They can be more cooperative and agree to increase production [but] they wouldn’t want to be seen doing it under pressure. It will take some time for the EU ban on Russian oil imports to take effect [so] OPEC and OPEC + may have a few more months when it becomes clear that there is an oil shortage, and that gives them a reason to say, “well, we’re going to increase production and close this gap.” So they can do it as a market measure without giving the impression of giving in to political pressure.

How likely is this bill to be approved in the Senate and the House? Is there a chance that Biden will overtake him too?

Having another card to play will be pretty cool for the administration, even if it won’t let it go all the way. The NOPEC account is an additional element at a time when the US doesn’t have that many cards to play [against oil producers]. Many of these bills have come up in the past, and there is always some national security argument that does [oil producing states] they are our allies, who do not want to disturb our relationship with them and who are important for the oil market. But this time around, there are some elements that might give it a better chance.

How much was the enlargement in Ukraine going to cost the world

[Biden] he should have let it pass, or he should have said, “I vetoed it because the Saudis agreed on something for us.” [like] agree to increase production or something. He can’t just veto for no reason because this is just one more weapon against him from both Republicans and the Democratic Progressive Left, saying it is. [doing the] A favor to the Saudis at a time when oil prices are high.

Not vetoing would be seen by Saudi Arabia and other manufacturers as a rather hostile move.

Could the passage of this bill have a negative effect on the United States itself?

The recovery in prices has been very positive for the US oil industry. But there is practically not much spare capacity [in the US]. Even though Saudi Arabia and the UAE have used all their spare capacity, the market is still quite tense and with the exit of Russia, the market will shrink.

This transcript has been edited for greater length and clarity

The digested

The United States says it is preparing for a world both with and without a nuclear deal with Iran

The United States is now preparing equally for both a scenario where there is a mutual return to Iran’s respect for a nuclear deal and one where there is no deal, the Department of State.

  • Background: The main sticking point in the talks is Iran’s call to remove its Revolutionary Guards from the US list of foreign terrorist organizations. On Wednesday, the US Senate passed a non-binding resolution calling on the Biden administration not to accept a nuclear deal with Iran unless Tehran agrees to strict minimum requirements, such as preventing oil exports to China, curbing the its ballistic missile program and the continuation of sanctions on the Revolutionary Guards.
  • Because matter: A failure in talks to revive the nuclear deal with Iran would deprive oil markets of more than one million new barrels of Iranian oil which could alleviate rising crude oil prices and, in turn, tame inflation.

Iran will execute the Swedish-Iranian on espionage charges by 21 May

A Swedish-Iranian sentenced to death in Iran on suspicion of spying will be executed on May 21, Iranian semi-official news agency ISNA said Wednesday. The Swedish foreign minister asked for his release in a phone call with his Iranian counterpart.

  • Background: Ahmadreza Djalali, a doctor and researcher, was arrested in 2016 during a visit to Iran. His conviction was announced shortly before the trial of Hamid Noury, a former Iranian prosecutor arrested by the Swedish authorities in 2019, ended in Stockholm. Noury ​​faces life in prison on charges of international war crimes and violations of human rights. Iran called the allegations “baseless”. The sentence is scheduled for July 14.
  • Because matter: Iranian Revolutionary Guards have arrested dozens of dual nationals in recent years, mainly on charges of espionage. Rights activists accused Iran of using them as a bargaining chip. Iran, which does not recognize dual nationality, denies taking prisoners to obtain diplomatic draft.

At least three killed in the attack on Israel’s independence day

At least three people were killed and four injured in an attack in the central Israeli city of Elad on Thursday, according to Israeli emergency response services. Police said the incident involved two suspected attackers. One fired a rifle while the other attacked people with an ax or knife, police said. The suspects have not yet been approved.

  • Background: The attack marks the latest in a series of violent incidents that have plagued Israel and the Palestinian territories in recent weeks. Dozens have died in attacks in Israel and the West Bank since March 22, according to a CNN tally.
  • Because matter: The attack comes after a period of clashes in the al Aqsa mosque complex in Jerusalem, where Palestinians protested against the presence of Israeli troops. Only Muslims can visit the holy place during the last 10 days of Ramadan every year. Ramadan ended last week and groups of Israeli Jews began visiting again on Thursday.

What’s trending

Turkey: #sigarazammi (cigarette increase)

Turks, already frustrated by record inflation and the economic recession, had another burden on their budgets this week: the price of cigarettes.

The nation, which has historically had one of the highest rates of smokers in the world, has recently fallen in the rankings, according to reports. Still, 31% of adults in the country of 81 million they are smokers.

The price of cigarettes has increased by 2 pounds ($ 0.13) for some brands, representing a 5% to 10% increase depending on the type of cigarette, according to Ozgur Aybas, president of the alcohol and cigarette trafficking platform. known as Tekel. A hashtag complaining of the increase was trending in the country.

“Enough!” a Twitter user posted Thursday about the increase in the price of cigarettes. “I quit just in time,” posted another, saying they quit the habit over a month ago.

The rise in the price of cigarettes came on the day the Turkish Statistical Institute reported that annual inflation had peaked in two decades in April, hitting 70%. Consumer prices rose 7.25% month over month. The median monthly household income available in the country was around $ 430 in 2020, according to the Turkish Statistical Institute.

Ali Babacan, former Minister of Economy and current leader of the opposition Deva party, tweeted “We are experiencing destruction in which the purchasing power of people who earn money by working is being destroyed.”

#enflasyon, or inflation, is also a trend in Turkey.

In February, Turkey’s economy and finance minister said the country would see single-digit inflation by June 2023, when parliamentary and presidential elections are due to take place.

By Isil Sariyuce

Tweet of the day

Saudi billionaire prince Alwaleed bin Talal seemed to have changed his mind about entrepreneur Elon Musk’s offer of buy TwitterI that the prince holds a stake.
On April 14, the prince tweeted which did not consider Musk’s offer to “get close to the intrinsic value” of Twitter and rejected the offer as “one of the largest long-term shareholders.”
Moss shot backasking how much of the company Saudi Arabia owns “directly and indirectly”, as well as his country’s views on “journalistic freedom of speech”.
Thursday, Alwaleed tweeted It was great to get in touch with his “new friend” Musk, choosing to invest his $ 1.89 billion stake in the deal rather than cash out.