Chapter 729: Stabilizing Oil Prices

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Britain desperately expanded the scale of its North Sea oil fields, desperately extracted crude oil from the continental shelf, and exported it to European countries, with oil revenues, Britain's domestic economy began to improve, the abnormal prosperity of the oil industry has long since rejuvenated other industries, unemployment has also begun to fall, Britain seems to have shaken off the economic decline. Pen @ fun @ pavilion wWw. biqUgE。 info≦≧

"It seems that if we want to get out of the current lack of income, we need to increase oil production." Qusay said.

"Yes, we are now unsealing wells that were mothballed because of the cuts, increasing the number of oil workers, trying to get the fields back to the levels before the cuts, and to re-meet the oil quotas that we allocated under OPEC." said the Minister of Oil.

"It's not just that, we need to improve more." Qusay said.

"President, we cannot undermine the management of OPEC. ≦≧”

"I mean, we OPEC countries have to increase production, to help the global economy to recover, in this incident, we had no choice but to reduce crude oil production, and now, we have finally achieved our goal, as the world's energy supplier, we need to show that we in the Middle East have made outstanding contributions to the world economy, to make up for the losses of other countries in the world some time ago." Qusay said...... Your Majesty, over the past few years, you have wantonly reduced oil production, resulting in high crude oil prices around the world. It was also said that we would change the system of settling oil in dollars, which seriously hurt the friendship between our two countries. U.S. Ambassador to Saudi Arabia Hume Horan. Looking at the seat in front of him, Saudi King Fahd said.

This sentence is full of serious US dissatisfaction with Saudi Arabia, and this is Hume Holland exerting pressure from the United States on Saudi Arabia.

Right now. The domestic economic situation in the United States has deteriorated severely, due to the oil crisis in the 70s, which led to a sharp increase in energy prices in the United States, followed by severe inflation, in order to control severe inflation, the United States raised official interest rates three times in a row. ≦≧ implement a tight monetary policy. In the United States, there were double-digit official interest rates and 20% market interest rates, and high interest rates attracted a large amount of foreign capital into the United States, causing the dollar to soar in the five years from 1979 to this year. The U.S. dollar exchange rate has risen by nearly 60%, and the sharp appreciation of the U.S. dollar has led to a rapid expansion of the U.S. trade deficit, and this year, the U.S. current account deficit has reached a record $100 billion!

$100 billion! This means that the US economy could collapse at any time.

In order to save the US economy, US officials have come up with various means to solve the problem, and the trade deficit, mainly because of the economic shock of RIBEN and Germany, is now in the United States. Flooded with all kinds of goods made in Riben, the United States zhèngfu is working towards a solution to this problem. This year, the Middle East region has once again played the trick of reducing oil production, and the United States has already taken countermeasures to expand domestic crude oil extraction and increase the proportion of crude oil imported from other oil-producing regions. However, the price of crude oil is international, and oil prices are rising. ≦≧ those oil-producing countries will not sell to the United States at the original price, so this has caused a great impact on the American economy, making the already collapsing economy even worse.

In the final stage of the conflict between Israel and Syria, the United Arab forces, including Saudi Arabia and Kuwait, occupied the Golan Heights in the name of peacekeeping, threatening the interests of Israel, but the United States still chose to acquiesce, because the United States needs the Middle East to return to calm as soon as possible, the oil-producing countries need to return to normal, and the high energy problem needs to be solved!

The United States needs cheap crude oil, and the United States needs to get its allies Saudi Arabia and Kuwait to increase crude oil production to tide over the American economy! Use both hard and soft to make these two countries obedient! The last time during the war, the United States put pressure and froze their assets, but instead of working, it was counterproductive, but now that the war is over, the United States is starting to repeat its old ways.

King Fahd looked at the somewhat arrogant US ambassador in front of him, and of course he knew what the other side was thinking, and Saudi Arabia's defense policy was pro-American, and it had always spared no effort to support the United States, unless the two sides had opposite attitudes on the issue of Israel. ≦≧ Saudi Arabia once proposed to let the world's oil producing countries only use dollars to settle oil, which has helped the United States through the economic crisis, the United States and Saudi Arabia have always maintained good relations, and a large part of the dollars obtained by Saudi Arabia's oil exports are invested in the United States.

The production cuts, embargoes, and soaring oil prices in the past few months have made it very difficult for the Americans, and they are now protesting like this, which is very much in line with their style, and before that, their protests were even stronger, but at that time, King Fahd did not come forward, and all his secretaries received them, and it is said that the ambassador at that time spat at the stars, and was very dissatisfied with Saudi Arabia's statement.

"In the last incident, because Israel secretly developed nuclear weapons, and the international community did not have the right sanctions, and Israel refused to accept the resolution proposed by the United Nations, we can only achieve peace in the Middle East and maintain the strategic balance here through our own Arab efforts. Now, Israel has admitted its mistake and signed the NPT, but the reparations have not yet arrived. ≦≧ now that the problem has been resolved through us Arabs ourselves, upholding the resolutions of the United Nations, we have completely stopped the production cuts and embargoes imposed some time ago and are now gradually returning to normal levels. King Fahd said. He explained it in a sincere enough way.

"However, the high price of crude oil in recent months has caused turmoil in the world economy, and the oil-producing countries in the Middle East have a lot to blame for these situations." Hume Holland continued.

Hearing this, a trace of sorrow flashed on King Fahd's face, the Americans deceived people too much this time! Your economy is in turmoil, and you are complaining about the oil-producing countries in the Middle East? The oil is ours, and we can sell it if we want it, and we don't sell it if we don't want to. However, now Saudi Arabia's national defense policy is pro-American, if the two sides completely fall out, needless to say, at least the army is completely American-style equipment, just like the original Iranian army, completely losing the source of logistics, it seems that in the future, Saudi Arabia's equipment will gradually move closer to Iraq, which is the right choice.

Of course, King Fahd also knows that the other party said this in order to exert more pressure on Saudi Arabia and achieve their goal, but what is their purpose this time? And let Saudi Arabia increase its dollar holdings? Saudi Arabia needs to think carefully.

"In order to help alleviate the global economic downturn, OPEC members should work together to increase oil production and increase oil exports, even if you are now back to the original production, but the scheduled export share for the whole year will not be reached, and there will be a big gap in the market, which is not suitable for both oil producers and oil users."

Originally, the purpose of establishing OPEC is to coordinate oil production, how much the international market needs, how much to produce, if there is more production, the market is saturated, then the price of crude oil will fall, for the oil-producing countries, it is a very loss-making business, although in fact, some oil-producing countries will secretly export more crude oil in exchange for more foreign exchange, at this time, Saudi Arabia will be a big country, gracefully reduce their own oil exports, to adjust the market, which is also the reason why Saudi Arabia is respected by other Middle Eastern countries.

And now, because the production cut and embargo have lasted for several months, even if normal production is resumed, it still cannot reach normal production, and there is still a shortage of oil in the world, so it can only increase production! There is some truth in his statement, if he said it at the beginning, it might have a better effect, but some time ago, he was always closed-door, which made Hume Holland very depressed, and the United States hinted that he wanted to put some pressure on Saudi Arabia, so he began to speak in a tough tone.

"If we increase the volume of oil exports, it will violate the orbit of OPEC." King Fahd said. Although Saudi Arabia's income has been lost a lot due to the reduction in production in the past few months, it is inappropriate for Saudi Arabia's treasury to be very abundant and not care about this amount of money and wantonly increase oil exports.

Didn't you make it clear? "I mean, Saudi Arabia should make a proposal at OPEC for all member countries to increase oil production and help the world economy return to normal," Hume Holland said. ”

Are all increasing oil production? Is that appropriate? King Fahd pondered in his heart, but said on his lips: "We Saudi Arabia will do our best to stabilize the world crude oil market and help the world economy enter the normal development track, and we Saudi Arabia are very willing, but this requires the consent of all OPEC member countries." ”

"We look forward to the international crude oil price falling to a reasonable level as soon as possible." Hume Holland said: "We believe in the performance of our friendly country, Saudi Arabia. The -3 pre-jing aircraft and K-3 tanker produced by Boeing for your country are being tested, and if there are no problems, they will be delivered at the end of the year, and your new orders, including the Paveway laser-guided bomb and the Maverick air-to-surface missile, are in production. ”

"That's great, our Air Force will go to the United States as soon as possible to receive it." This was stated by the Minister of National Defense, Prince Sultan.

"Phew!" Prince Sultan looked at the distant back of the American ambassador and spat on the gorgeous carpet, not caring about his identity at all, and could not make such a filthy gesture. (To be continued) RQ