Addressing the issue of NOPEC, Dr Nakhle argues that this is not the first time that the bill has been proposed. However, no US president (whether a Republican or a Democrat) has signed the bill to date which is required to become effective. It is likely that this bill is used as a warning to OPEC, as the price of oil continues to cause discontent at the pump in the US. The bill would have major repercussions on US relations not only with Saudi Arabia but all of the OPEC countries.
On OPEC+’s next meeting, Dr Nakhle says that, from the producers’ group perspective, current market signals do not strongly support a deviation from existing plan. In particular, economic growth is increasingly looking fragile. The economic cost of the zero-covid policy is proving high in China, the biggest oil importer in the world. These developments partly explain why oil prices have retreated from the levels we saw when the war in Ukraine started.
Watch the discussion (in Arabic):
“Sanctions and the Economic Consequences of Higher Oil Prices“, Christof Rühl, Apr 2022
“Energy Markets and the Design of Sanctions on Russia“, Christof Rühl, Mar 2022
“Is Moscow turning to Asia?“, Dr Carole Nakhle, Apr 2022
“Putin demands gas exports to be paid in rubles, and US SPR release“, Dr Carole Nakhle, Apr 2022
“The EU’s 4th round of sanctions on Russia“, Dr Carole Nakhle, Mar 2022
“Can Europe completely cut its reliance on Russian energy supplies?“, Dr Carole Nakhle, Mar 2022