August 19, 2022

Saudi Diplomat Dodges on Boosting Oil Production, Claims High U. S. Gas Costs Due To Biden Policies

“The problem of gasoline in the United States is more a function of the lack of refining capacity in the United States than a lack of actual crude oil, ” says foreign affairs ressortchef (umgangssprachlich).

A top Saudi diplomat existing at the meeting between May well Biden and Saudi Crown Prince Mohammed bin Salman denied Biden pressured these to increase oil production, and argued that high gasoline prices in the U. S i9000. are a “ function of the lack of refining capacity” rather than shortage of oil.

In an job interview on CNN’s “ Scenario Room” on Friday, Saudi Minister of State with regard to Foreign Affairs Adel al-Jubeir refused to commit to producing more oil while explaining that that high domestic gas prices are a result of Biden’s policies.

“ Did President Biden ask you, Saudi Arabia, to increase oil production with the expectation that it would reduce the price of gasoline in the United States? ” point Wolf Blitzer asked.

“ Not within — with specificity because the president knows that [the] energy issue is an issue of supply plus demand. It’s an issue of balancing markets. Saudi Arabia’s committed to ensuring stability in the oil markets. The U. S. government is aware of this particular, ” al-Jubeir responded.

“ The issue of raises in prices of gas that we’ve seen recently are really a function of geopolitics and psychology a lot more than they are about fundamental supply/demand, ” he continued. “ The problem of gasoline in the usa is more a function of the lack of refining capacity in the usa than a shortage of actual crude oil. ”

Blitzer asked: “ Yet is Saudi Arabia ready to increase oil production? ”

Al-Jubeir replied:

Saudi Arabia has made it very clear over the past decades it seeks to [ensure] market stability, it looks at the fundamentals of provide and demand, and that functions within OPEC and now inside OPEC-plus to ensure that the markets are adequately supplied with crude oil. Saudi Arabia has increased its oil production over the past year considerably in accordance with the demands of the market, and this is a situation that is continuously being evaluated by our Energy Ministry and by experts in this area to find out whether or not more oil is needed or less oil is necessary.

Blitzer again asked in case Biden “ pressed” the Saudis on the issue associated with boosting oil production.

“ No, the president doesn’t press all of us on this issue. The leader is aware that Saudi Persia is keen on maintaining balance in the markets, ” al-Jubeir said. “ Wolf, the particular President did not come right here to press Saudi Arabia. The President came right here to have a meeting with one of America’s most important allies in the world and the region. We face typical challenges that we need to work together in order to overcome. ”

Data from the U. S. Refinery Capacity Report appears to support al-Jubeir’s claim about refining being a main factor in rising gas prices in the U. S.

Crude oil distillation capability in the U. S. dropped from 19 million barrels per calendar day at the beginning of 2020 to 18. 1 million at the start of 2021, marking the first decrease in refinery capability since 2017, the statement noted.

Phil Flynn, a senior account executive/market analyst at the Price Futures Group, also remarked that “ refineries are getting compressed out of business because of tighter regulations from the Biden management and the pressure by the government” to reduce gasoline demand.

Five refining facilities have already shuttered in 2021, including the Shell refinery within Convent, Louisiana, as well as New Mexico, California, North Dakota, and Wyoming.

Crown Prince Mohammed rubbish bin Salman announced Saturday that will Saudi Arabia would enhance oil production from 10 million barrels a day to 13 million barrels.

It remains to be seen if this kind of boost in oil manufacturing will help lower U. S. gas prices.

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