His remarks will fuel worries that the shortages that have driven up gas and energy prices may be here to stay and could even get worse when gas sanctions and Europe’s embargo on the majority of Russian oil products come into effect by the end of the year.
Biden has been reluctant to expand US output due to criticism from environmental groups, therefore Macron may have pressed him to do so in order to solve the shortage.
The short audio tape that was cut off when US national security adviser Jake Sullivan crossed the two men and suggested they continue their chat inside because of the close cameras, however, leaves several questions unanswered.
The UAE leader Sheikh Mohammed bin Zayed al-Nahyan may be heard saying “I had a call with MbZ” in the audio clip.
The French president went on to say, “He told me two things.” “I’m at my limit, at my limit” (production capacity). He says that to be the case.
Then he added that Saudi Arabia can rise by 150. (thousands barrels per day). Perhaps a little bit more, but they won’t have enormous capacity until at least six months.
The two guys were then interrupted by Sullivan, who warned them to be careful. Because of the cameras, perhaps we should just enter.
As the region imposes sanctions on Putin’s government as a result of the war in Ukraine, Europe is looking for alternatives to the 2 million barrels of oil it buys from Russia every day.
It happens after EU commissioner Ursula Von Der Leyen declared earlier this month that the group would prohibit 90% of Russian oil imports by the end of the year.
There will be no more seaborne imports of Russian oil or petroleum products, with only a small exception for oil delivered through pipeline.
The concession guaranteed the support of import-dependent nations like Hungary, Slovakia, and the Czech Republic.
Import restrictions are intended to penalize Putin for invading Ukraine and to deny him the money he needs to continue funding his war operation.
However, they are also contributing to price increases and worsening inflation, which is hurting economies, especially in the West.
Biden had hoped to convince Saudi Arabia and the UAE to increase their own output as a method of calming the market, but has already released some oil from US strategic reserves as a stop-gap measure.
However, if Macron’s statements are to be accepted, it appears like neither nation will be able to step up and fill the gap.
If the US is unwilling to increase its own output, it puts future price increases and even potential energy shortages at risk as winter energy demand spikes.
The UAE is producing its allotted OPEC+ quota of 3.168 million barrels per day, according to a statement made late on Monday (bpd).
Energy Minister Suhail bin Mohammed Al Mazrouei stated, “In light of recent media reports, I would like to clarify that the UAE is generating close to our maximum production potential based on its current OPEC+ production baseline.”
Due to an increase in demand during the worst of the coronavirus pandemic and a shortfall of supply, global oil prices have been steadily climbing in recent months. Since Moscow invaded Ukraine in late February, prices have increased much more.
Following Reuters’s reporting of Macron’s remarks, benchmark crude increased on Monday. As the West looks for measures to cut Russian oil imports to punish Moscow, Brent oil prices increased 1.7 percent to over $115 per barrel.
Saudi Arabia is currently producing 10.5 million barrels per day (bpd), but its nameplate capacity is between 12.0 million and 12.5, which theoretically should allow them to increase output by 2 million.
The UAE now produces about 3 million barrels per day, has a capacity of 3.4 million, and is working to increase it to 4 million barrels per day.
Approximately 2 million bpd of Russian oil and 2 million bpd of refined products that Europe was importing from Moscow prior to the Ukraine War are being replaced by alternative sources.