LONDON (Pakistan Point News / Sputnik - 08th May, 2022) The Organization of the Petroleum Exporting Countries (OPEC) does not plan to help Western countries deal with the rising prices by increasing production, The Telegraph reports citing sources.
US requests for extra oil have been rejected by Riyadh, the newspaper said on Saturday, explaining that Saudi Arabia has the potential of easing pressure on supply and prices and thus softening the current economic crisis.
The Telegraph warns that if oil prices remain as high as they are now, this will cause a global recession and a drop in demand, which, in turn, will lead to low prices that will not be beneficial for oil producing countries.
According to the newspaper, the reasons behind Riyadh's refusal to increase production include a worsening of relations with Washington under the administration of US President Joe Biden, as well as Russia's membership in OPEC.
Earlier this week, the OPEC+ alliance decided to stick to the oil output cut deal and increase production only by the planned 432,000 barrels per day in June. The announcement came as Europe is inching toward a full ban of Russian energy products as part of the Western sanctions campaign launched against Moscow over its special military operation in Ukraine.
According to OPEC Secretary General Mohammad Barkindo, it is not possible for other oil producers in OPEC+ to replace Russian exports of more than 7 million barrels per day.
