With the visit of the American president to Saudi Arabia, there were high hopes that, as a result of negotiations, this country would agree to increase oil production and thus help bring down too high fuel prices.
Exaggerated expectations led to the fact that the media began to replicate the statements of Saudi officials during the visit, but in a hurry distorted these statements or gave them incompetent interpretations. Here are samples of some of the news: "The Saudis increase production by 50%", "Saudi Arabia agreed to increase production to 13 million barrels per day", "Oil price has crept down."
In fact, all these sensations turned out to be zilch. Saudi Minister of State for Foreign Affairs Adel al-Jubeir told reporters after Joe Biden left Jeddah that oil production was not discussed at all at the meeting. No oil promises were made to Biden.
Following the visit, the parties signed a non-binding declaration in which Saudi Arabia stated that it was "committed to supporting the balance of the global oil market for the sake of sustainable growth." In addition, the document says that the parties discussed "further steps" aimed at "helping to significantly stabilize the markets."
But what about a 50 percent increase in production? This is a blunder of a stupid and hasty journalist. In June (and not during Biden's visit), Saudi Arabia indeed promised, as a gesture of goodwill, to increase its monthly quota, stipulated by the terms of the OPEC + alliance, by one and a half times. Once again for the dull: not all production, but only the volume of the monthly increase in production agreed with other members of the alliance in this particular country. This was done in order to compensate for the decline in production in countries such as Russia, and to enable OPEC + to supply the market with as much oil as provided for by the agreements of the alliance.
Now about the intention of the Saudis to increase production to 13 million barrels per day (against the current quota of 11 million and the real potential of 12 million barrels). They do have such plans, but their implementation is scheduled for the period until 2027, as Saudi Aramco announced, and not now.
Here is what Saudi Crown Prince Mohammed bin Salman said in the presence of Biden: “The kingdom will contribute to building up its oil production potential, increasing it to 13 million barrels per day, after which the kingdom will no longer have an additional opportunity to increase production.”
Saudi officials explained that they do not refuse to discuss the increase in production, but they are ready to do this only if such an increase is demanded by the market – which is not happening now. Recall that, according to the latest OPEC report, this year the world oil market is characterized by an excess of supply over demand by one million barrels per day. There is no deficit and it is not expected until the end of the year.
According to al-Jubeir, Saudi Arabia "will produce more oil if there is a shortage, and if there is no shortage, then there will be no increase in production." In any case, he added, decisions on production volumes will only be made in coordination with other OPEC+ members.”
After the visit, Biden only had to express his hope (not supported by any agreements) that the oil-producing countries would become oil-consuming countries.
Previously, Saudi officials have repeatedly pointed out to American emissaries not only that asking the Arabs to increase oil production in their countries and at the same time hinder the development of the oil industry in the United States itself, as the Joe Biden administration is doing, is at least illogical.