US President Joe Biden is reconsidering the relationship between the US and Saudi Arabia. This is because the Organization of Crude Oil Producing Countries (OPEC) decided to cut oil production on 5 October. America is very upset with this. Saudi Arabia is a major member of this group.
In an interview given to CNN, White House National Security Spokesperson John Kirby said – President Biden is reconsidering US relations with Saudi Arabia. Due to the Russia-Ukraine war, the price of crude oil has increased, due to which oil has become expensive worldwide. The US wants Saudi Arabia to increase oil production so that global oil prices can be controlled.
Saudi Arabia accused of supporting Russia
Several US officials have accused Saudi of helping Russia in the Ukraine war. Officials say Saudi Arabia is supporting Russia by cutting oil production. This issue is not only of concern to the Ukraine war, but it is also a matter of US national security interests. OPEC's decision to reduce production will further increase oil prices in the global market. Biden called OPEC's decision disappointing.
The US imports 14% of crude oil from OPEC
America produces about 18% of crude oil. At the same time, it imports oil from OPEC and Gulf countries to meet its needs. In 1977 the US was more dependent on OPEC. OPEC exported 70% of its petroleum imports and 85% of its crude oil imports to the US.
In 2020, OPEC's share in total US petroleum imports was close to 11% and its share in US crude oil imports decreased to 14%.
Saudi Arabia, the largest OPEC exporter, was a partner with 7% of total US petroleum imports and 8% of US crude oil imports. Saudi Arabia is also the largest exporter of US petroleum imports from the Gulf countries.
In 2020, about 10% of US petroleum imports and 12% of US crude oil imports came from Gulf countries.
When OPEC destroyed America's economy
After the formation of OPEC countries in 1960, in 1973 some countries led by Saudi Arabia, Iran, and Iraq completely stalled the economy of powerful countries like America. America supported Israel in the 1973 war of Yom Kippur. The other side included Arab countries led by Egypt and Syria.
When these countries stopped giving oil to America, America's economy had gone to its worst phase. At the same time, OPEC emerged in front of the world as the world's most powerful oil organization. Since then it has been recognized that OPEC directly affects the world economy.
India may also be affected by OPEC's decision
Saudi Arabia says its production has been cut to keep international oil prices stable. This decision is not related to the support or opposition of any country, but it can have an impact on India. This is because India imports 80% of its crude oil to meet its requirement.
OPEC countries supply 60% of India's crude oil requirement. These include Saudi Arabia, Iraq, Iran, and Venezuela. All these countries are founding members of OPEC. Most of India's oil needs are met by these countries.
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