Political | Process

Biden had hoped to secure a promise from Saudi Arabia to increase its output of oil, which could lead to easing of global supply pressures.

But Brent crude rose 2.6 per cent to $103.88 on Monday after Saudi Arabia’s Foreign Minister, Prince Faisal bin Farhan Al Saud, quelled speculation over an output increase, The Guardian reported.

He said that officials at the US-Arab summit on Saturday did not discuss oil and that the Opec+ oil cartel nations would continue to assess market conditions.

Naeem Aslam, chief market analyst at Avatrade, said: “The message is that it is Opec+ that makes the oil supply decision, and the cartel isn’t remotely interested in what Biden is trying to achieve.

“Opec+ will continue to control oil supply, and one country alone cannot determine the oil supply – at least that is the message that traders have taken from Biden’s visit to Saudi Arabia.”

The increase in oil price will keep up the pressure at the pumps, where drivers have faced record petrol and diesel prices.

However, Brent crude prices have eased since the highs of about $130 a barrel in March during the early weeks of the war in Ukraine.

Oil prices ended lower last week for the fifth consecutive week. Concerns over the potential for a global recession has sent investors fleeing from commodity markets, The Guardian reports

That place is Russia. According to new reporting by Reuters, as Saudis have increased oil sales to the rest of the world, they’re buying more supply from Russia.

“This is why these geopolitical considerations actually don’t make much sense because our prospects of being able to push the Saudis towards ourselves and away from the Russians simply are not particularly great,” Parsi said.

He says for the Saudis to send additional oil to the U.S., Biden would have to offer them a security pact, meaning that the U.S. would send American servicemen and women to defend the Saudi regime.

politicalprocess.net