If you haven’t heard the latest major energy-related news by now, it’s surely not good.
The Kingdom of Saudi Arabia (KSA) and other OPEC+ oil producers recently announced further cuts in their oil production, amounting to around 1.16 million barrels per day.
It’s a surprise move. Their claim is that it’s aimed at supporting market stability.
Oil prices last month fell towards $70 a barrel, the lowest in 15 months.
That scenario unfolded over concerns that a global banking crisis would hit demand.
Still, further action by OPEC+ to support the market was not expected after sources downplayed this prospect and crude recovered towards $80.
Make no mistake, the latest reductions could lift oil prices by $10 per barrel, sending costs per barrel closer to $100.
While the Saudis and OPEC+ are saying these moves were precautionary measures aimed at supporting the stability of the oil market, take it to the bank — they aren’t.
The Saudis and OPEC+ now see an opportunity to advance the interests of their nations in light of America’s stark weakness on the global stage.
This news comes shortly after China and Brazil secured a deal to conduct bilateral trade in their own respective currencies, eliminating the U.S. dollar as an intermediary.
These two countries have roughly $150 billion in annual trade.
The decision by Brazil and China to pursue non-dollar trade is a huge moment in global realpolitik. It’s a clear sign that countries are seeking to move away from using the U.S. currency.
Additionally, foreign policy experts were equally shocked when news broke about the Islamic Republic of Iran and the Kingdom of Saudi Arabia agreed to reestablish diplomatic relations, as well as reopen embassies, following seven years of tensions.
The deal, recently struck in Beijing amid its ceremonial National People’s Congress, represents a major diplomatic victory for the Chinese as Gulf Arab states perceive the United States slowly withdrawing from the wider Mideast.
It should be noted that China, which last month hosted Iran’s hard-line President Ebrahim Raisi, is a top purchaser of Saudi oil — in addition to Iranian oil.
So whether it’s China and Brazil moving to eliminate the U.S. dollar, or China brokering a normalization agreement between the Kingdom of Saudi Arabia and the Islamic Republic of Iran, or the Saudis cutting oil production — it’s all because Anercia no longer leads.
She has fallen from a position of strength, which can only mean we need to pivot back, and fast, to the previous administration’s sound America First policy.
A strategic agenda which helped reduce our reliance on foreign fuel and strengthened our position globally.
The current administration should counter this move by the KSA and OPEC+ by immediately restarting the Keystone XL pipeline and enforcing existing U.S. sanctions that prohibit China from purchasing Iranian oil.
This America First approach helped lower consumer energy and fuel costs while promoting prosperity for all Americans.
Finally, it was America First which transformed us to a state of energy independence — for the first time in over 60 years.
America should be a leading exporter of oil and energy — not a leading importer.
The U.S. should be brokering normalization agreements, not learning about other nations doing so.
Team Biden has promoted policies taking America from energy dominance to energy dependence, and done so in less than 20 months.
President Trump well-knew, and embodied Ronald Reagan’s axiom, “Government is not the solution to our problem, government is the problem.”
Trump knew that government needed to get out of the way so that oil companies can get at the vast supplies of good old oil and gas right under our U.S. soil.
We must reverse disastrous Biden-energy-dependence on foreign nations. Today.
It won’t be long before it’s entirely too late for us to act.
Bryan E. Leib is the former Executive Director of Iranian Americans for Liberty. He has also served as the National Director for Americans Against Antisemitism. In 2018, Mr. Leib was a GOP Endorsed Congressional Candidate (PA-03). He tweets at @Bryan_E_Leib. Read Bryan E. Leib’s Reports — More Here.
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