In a recent report by the Financial Times, Amos Hochstein, the energy security advisor to US President Joe Biden, said he was confident that Arab oil producers would not weaponize energy. Despite the complex geopolitical landscape, including Russia's involvement in a major conflict and tensions in the Middle East where missiles fly near oil fields, oil prices remain near their lowest point since early 2023. This, according to Hochstein, indicates that the United States is handling current challenges really well, although the future remains unpredictable. Hochstein also highlighted the strong cooperation between the US and Persian Gulf countries, particularly Saudi Arabia, emphasizing the importance of coordination between oil producers and consumers. The Financial Times notes concerns in Saudi Arabia over oil prices falling below $80 per barrel. An upcoming OPEC+ meeting, scheduled for Sunday, November 26, is expected to see the kingdom extend its production cut by 1 million barrels per day. Further reductions in oil supply may be discussed at the meeting, potentially reducing global oil availability by an additional 1 million barrels. Analysts believe any decision by OPEC+, including cartel members and independent oil producers, will be framed as an effort to maintain market stability. This week, Brent crude prices fluctuated significantly, exceeding $82 per barrel on November 20 and dropping below $77 on November 16. Market volatility is attributed to conflicting reports and an unexpected increase in US oil reserves, leading to a substantial rise in market supply. However, there is uncertainty regarding Saudi Arabia's response, with experts wary of potential market disruptions by the world's largest oil producer.
