President Joe Biden, who traveled to Saudi Arabia in July, said he didn’t go there for oil but added that he and the prince “privately reached an understanding that oil-producing states would agree to increase output at an Aug. 3 meeting.”
In August, the Organization of the Petroleum Exporting Countries (OPEC) announced a boost in output — 100,000 barrels per day. The increase, equivalent to 0.1% of global demand, certainly wouldn’t help the U.S., which consumes about 20 million barrels a day.
“The increase of 100,000 bpd will be one of the smallest since OPEC quotas were introduced in 1982, OPEC data shows,” Reuters reported at the time.
But that was great news compared to what OPEC and the Saudi prince did on Wednesday.
While gas prices in the U.S. dropped for 99 days in a row, they’ve risen again in recent weeks. Yet OPEC thinks there’s a glut in the world market for crude oil and announced it would slash oil production by 2 million barrels a day.