MADRID, 24 Oct. (EUROPA PRESS) –
The main adviser to the President of the United States Joe Biden on energy matters, Amos Hochstein, affirmed this Sunday that the cut in oil production by the Organization of Petroleum Exporting Countries (OPEC) has been a mainly political movement that has not it will deter the US administration from trying to rein in domestic energy prices.
Hochstein, who has participated in US oil diplomacy with Saudi Arabia, explained that the cuts due to the decision by Riyadh and its allies to reduce production targets by two million barrels a day is not a reality, because in the end only They will reduce 500 barrels.
“The impact on the market will not be that significant, so this was more than anything a big political statement that OPEC has made,” Hochstein said in an interview with CBS.
OPEC and its partners — a 23-nation alliance led by Saudi Arabia and Russia — said the cuts were an attempt to ease market volatility, a rationale the White House has rejected.
“Clearly no one can argue that it was justified for any economic reason,” Hochstein said.
“There are many geopolitical events,” the adviser warned, alleging that it is unknown what Russian President Vladimir Putin will do. “We have to be prepared for that,” he assured.
“We’re making sure we’re prepared so that if we need to release additional (barrels of energy) we can do so very quickly,” Hochstein said.
Last week Washington announced the release of an additional 15 million barrels of oil from its strategic reserve. Biden directed his administration to take these steps to strengthen energy security, address supply shortages and reduce costs.
