Will an Apparent Saudi Concession on Oil Production Drop US Prices at the Pump?

Dec 3, 2021
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Also published in The Hill
About the Authors
Simon Henderson
Simon Henderson

Simon Henderson is the Baker Senior Fellow and director of the Bernstein Program on Gulf and Energy Policy at The Washington Institute, specializing in energy matters and the conservative Arab states of the Persian Gulf.

Articles & Testimony

It is unclear how long any price effects might last, and Riyadh may yet expect a diplomatic quid pro quo from Washington.

“President Biden blinked” could have been the headline on a story in today’s Financial Times. But it wasn’t. Instead the sub-editor went for the somber “Opec+ sticks with oil supply increase after US overture to Saudis.” Nevertheless, the story highlights realpolitik with COVID-era urgency and commodity pricing. Thursday started with a meeting of the super-cartel OPEC+. What would they do, given the Omicron COVID-variant uncertainty, combined with a vulnerable though high oil price (plus or minus $70 per barrel depending on the grade)? The initial announcement was to continue slightly increasing OPEC+ production volumes, a potentially price-easing measure...

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