Just Cut Production, Says Putin In Response To G7 Limiting Russian Oil P...

Just Cut Production, Says Putin In Response To G7 Limiting Russian Oil Prices

December 8, 2022.

Russian President Vladimir Putin finally spoke after the G7, European Union and Australia agreed to limit the price of Russian seaborne oil.

Last week, the G7, the European Union and Australia capped the price of Russian seaborne oil at $60 per barrel.

The limit on Russian oil prices was taken to suppress Moscow's revenue so that its war machine in Ukraine would stop.

On Friday (9/12/2022), Putin said that Russia only needs to cut its oil production and not sell it to any country that imposes price limits.

"Regarding our reaction, I have already said that we will not sell to countries that make such decisions," Putin told reporters at a news conference in the Kyrgyz capital Bishkek.

"We will think, perhaps, even about the possibility, if necessary, of reducing production," Putin continued.

Currently, Russia is the world's second largest oil exporter after Saudi Arabia. Moscow is also the largest gas exporter.

Putin said that Russia has production agreements with other members of the OPEC+ group of oil producers, so such a drastic step is still possible.

“We are thinking about this, there is no solution yet. And concrete steps will be set forth in a presidential decree which will be released in the next few days," Putin said.

Selling oil and gas to Europe has become one of Russia's main sources of income.

Putin has dismissed Western efforts to squeeze Russian finances, saying a price cap of $60 corresponds to what Russian oil is selling for.

The price of Russian Ural crude on Friday was around $53 a barrel, according to Reuters data.

Putin warned that Western attempts to limit prices would only lead to the collapse of the global oil industry and then catastrophic price increases.

“This will lead to the collapse of the industry itself, as consumers will always insist that prices are lower. The industry is already short of investment, short of funds, and if we only listen to consumers, then this investment will be zero," said Putin.

“All this will at some stage lead to catastrophic price spikes and the collapse of the global energy sector. This is a stupid, misunderstood and badly thought out proposal," Putin continued.

Source: www.kompas.com

Xi Jinping's Arrival to Saudi Arabia Is A Huge Blow To Destroy US Hegemony

Xi Jinping's Arrival to Saudi Arabia Is A Huge Blow To Destroy US Hegemony

December 8, 2022.

ISLAMTODAY ID- Chinese President Xi Jinping traveled to Saudi Arabia for three days since December 7 at the invitation of Saudi Arabia's King Salman bin Abdulaziz Al Saud.

The visit comes against a backdrop of continuing tensions between Beijing and Riyadh and Washington on the other.

The following is an estimate of the results of the visit, as reported by Sputniknews, Wednesday (7/12/2022).

  Great Host Deals?

Saudi news outlets reported hopes of signing a series of agreements worth more than $29 billion during Xi Jinping's visit to Riyadh.

The agreements include those related to energy and infrastructure.

According to the outlet, in addition to more than 20 preliminary agreements that will be signed on the sidelines of the Sino-Saudi summit.

In addition, it is hoped that Beijing and Riyadh will also be able to sign a document on strategic partnerships, as well as agree on a "harmonization" plan between the two countries' long-term programs, including the Saudi "Vision-2030" program and China's "One Belt - One Road" initiative.

The summit between the Chinese president and the Saudi King will also be attended by Saudi Arabia's Crown Prince Mohammed bin Salman.

As for Xi's travel agenda to Saudi Arabia, it also includes the Arab-China summit on cooperation and development, as well as the Arab-China meeting with the leaders of the Gulf Cooperation Council (GCC) consisting of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. Arabic (UAE).

'Double Impact' in the US

Some experts believe that the visit of the Chinese president to Saudi Arabia can be considered a double blow for the US, which is trying to dictate its terms to the global energy market.

Experts are of the opinion that the visit is touted as a significant event that transcends the current oil price situation.

This is because Xi will meet not only Saudi Arabian leaders, but also senior officials from Persian Gulf countries – at the meeting where “new relations between China and the Arab world” as well as Beijing and the international oil and gas community will be discussed.

According to some analysts, the fact of this encounter is “epoch-making and revolutionary” – a sign they believe indicates that a new world order is becoming more real.

Experts add that Washington has long tried to prevent Xi from visiting Riyadh, but without success.

According to them, the fact that the visit will take place reflects China's growing international influence.

Washington Vs Beijing tensions, Riyadh

Xi is traveling to Saudi Arabia as Washington's tensions with Riyadh and Beijing show no sign of letting up.

In October, US President Joe Biden warned that there would be "consequences" for Saudi Arabia for its move to cut oil production earlier that month, but declined to elaborate on what steps he might take.

In early October, the OPEC+ group of oil producers, which includes Saudi Arabia and Russia, announced that it had agreed to cut oil production by two million bpd from November and would take the agreed production levels for August as a reference point.

The move was made in response to the uncertain outlook for global oil markets, caused in part by Western sanctions on Russian energy shipments and a G7 plan to introduce price caps on Russian crude.

Saudi Arabia's foreign ministry rejected claims that the oil cuts were "politically motivated against the United States" or that the Saudis were "taking sides" in the Ukraine conflict.

The Saudis stressed that the decision was made unanimously by OPEC+ members and that the move was "based purely on economic considerations."

For your information, US-China relations deteriorated after the then Speaker of the US House of Representatives, Nancy Pelosi, visited Taiwan in early August.

Beijing denounced Pelosi's trip as a gesture of support for separatism, launching large-scale military exercises around Taiwan.

However, several countries, including France, the United States, Japan and others, have sent their delegations to the island since then, further increasing tensions in the Taiwan Strait.

Although the US does not enjoy formal diplomatic relations with Taiwan, Washington has a representative office in Taipei, remaining the island's largest supplier of military hardware.

Beijing regards the island as an integral part of the PRC, adhering to a policy of peaceful reunification under the “One China – Two Systems” model.

source: islamtoday.id Sputniknews