As the United States elections approach, the Democrats currently in power will do everything they can to lower the price of oil.
This is key to Biden’s policy. High fuel prices will also alienate loyal Democratic supporters.
The United States cannot single-handedly lower fuel prices, and the main player in this market remains Saudi Arabia. Saudi Arabia has not followed the US rules for the past year, and to fulfill the order of the Democrats, it needs a serious incentive.
Saudi Arabia may increase oil production in exchange for a defense pact from the United States.
Also discussed in the framework of the deal is the question of Israel’s recognition by the Saudis.
Probably Saudi Arabia will come to an agreement with the United States and the long-term expectations are that oil prices will fall and remain at relatively low prices around $65-$75 until November 2024.
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