Biden's Iran deal push leads to Saudi resistance to increase oil production
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Turns out that Joe's hankering for a nuclear deal with Iran is driving the Saudis to hold back on production.
The way it goes is this: The Saudis, who are known as the 'anchor producer' in the oil world, have cut back on production in order to raise or keep the price of oil higher. They need high prices because they know that prices are going to go down. How would they go down? If Joe Biden rams through his Iran deal with the mullahs and lifts sanctions on Iran. Iran's got a lot of oil it can sell in the world markets and all that new oil means the global price of oil goes down. More oil, cheaper prices.
The Saudis are actually banking on that happening, despite the fact that Iran's mullahs, as this analysis by Hamid Enayat the other day explains, are slow-walking the deal because they really, really like having a nuclear bomb which they see as key to maintaining their grip on power in Iran. Given a choice between killing off their mortal enemy -- the Saudis -- by signing a deal with eager-for-a-deal Joe Biden, or maintaining their grip internally, the mullahs have chosen the latter, which tells you a lot about what's going on in Iran.
But the Saudis think it will happen at some point, maybe soon, maybe later, they aren't taking chances. Every big oil producer knows that prices go up and prices go down. When they go down, it's bad for them, but only if they haven't saved for a rainy day, which is what all of the smart ones do. Dumb ones, like Venezuela, assume that oil prices will always be high and the money will roll in and out, so they don't save for a rainy day, they spend like sailors, saving nothing. But 'dumb' in the oil world is relatively rare, and nobody ever called the Saudis 'dumb.'
In short, it's Joe Biden's eagerness for a nuclear deal with Iran that is driving the Saudis to keep production low, energy scarce, and prices high. Biden of course, won't drop that course of action. But so long as he continues on that idiot path, and shuts down American production to boot, what can he expect? High oil prices worldwide are all his doing.
Biden's obsession with getting back into a bad deal with Iran is costing US drivers along with his idiotic anti-energy policies at home. There is nothing intelligent or beneficial to anyone outside of Iran in getting back into the worst deal in the history of the world. It is an action that is also likely to lead to war. The
Sunni states and Israel are not going to sit back and wait for Iran to attack them with nuclear weapons.
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