Saudi Arabia will increase oil production by 50%: what the United States proposed for the deal
US President Joe Biden, during a visit to Saudi Arabia, was able to agree with Crown Prince Mohammed bin Salman Al Saud to increase oil production.
In a joint statement, Biden noted that Saudi Arabia has committed itself to maintaining the balance of the global oil market for stable economic growth. The kingdom will also increase oil production by 50% in July and August. This is expected to stabilize markets and oil prices.
At the same time, Crown Prince of Saudi Arabia Salman bin Abdulaziz Al Saud said that his country is going to increase oil production from 10 to 13 million barrels per day.
As part of the deal, the American side decided to withdraw its contingent from the disputed island of Tiran. Saudi Arabia will do the same. Multinational forces and observers have been there for more than 40 years. Now the island will be open to tourism and the economy, which will contribute to the peace and prosperity of the region. The Parties undertake to ensure freedom of navigation in the area of the island.
Tiran Island is located in the strait between Saudi Arabia and Egypt. The Strait is a narrow navigable corridor, which is the outlet to the Red Sea from the Jordanian port of Aqaba and the Israeli port of Eilat.
According to Al Jazeera, this is Biden’s first visit to the Middle East since his election to the presidency. He wants OPEC countries to produce more oil in order to lower oil prices and also to reduce the highest rate of inflation in the last 40 years.