BIDEN Negotiating Skills leads to Saudi Arabia Slashing Oil Exports to US by 10% in July.

President Biden's negotiating skills have resulted in Saudi Arabia's decision to unilaterally reduce crude oil production by 1 million barrels per day (bpd) in July. This move will lead to a 10% drop in Saudi Arabia's total output, bringing it down to 9 million barrels a day, the lowest level since 2011. Bloomberg estimates suggest that this production cut will leave Saudi Arabia with less than 6 million barrels available for export, potentially impacting Western markets, particularly the United States, more than Asian markets.

The video explains that Saudi Aramco, the state-controlled oil giant, will prioritize Asian refiners and fulfill their crude oil requests, redirecting the majority of the remaining crude to Asia. As a result, Western countries, including Europe and the United States, will experience the tightening of the oil market.

By reducing exports to the US, Saudi Arabia aims to exert pressure on the market and prompt a noticeable tightening that will be reflected in inventory reports. The video highlights the influence of Saudi Aramco on Motiva, the largest refinery in the US, which has the potential to impact supplies to the facility located in Port Arthur.

While the US has reduced its dependence on Saudi crude in recent years, the video suggests that Riyadh sees this action as an opportunity to stimulate higher oil prices. Additionally, Saudi Energy Minister Prince Abdulaziz bin Salman has indicated the possibility of extending production cuts beyond July, building on the voluntary cuts agreed between Saudi Arabia and other major OPEC+ producers, including Russia.

The video concludes by discussing the significant impact of these developments on the strained relationship between Saudi Arabia and the United States, as the US faces a notable impact on oil supplies from one of its historically significant oil providers.