(Drivebycuriosity) - The price of oil is rising again ( cnbc). The media blame it on Saudi Arabia. Indeed the Opec leader cut oil production multiple times this year and announced to keep it restrained till end of the year at least. Typically a monopolist reduces production to raise prices.
But is there really no competition? Here comes politics into play. The Biden administration continues the sanctions against Iran. The sanctions curb Iran`s oil exports and so global oil production.
To make things worse. The Biden administration is also impeding domestic oil production, which could otherwise compensate the Saudi cuts and nix the Opec monopoly.
Biden did not ban fracking as feared. But his administration impedes fracking by difficult regulations and slow drilling permits. One expert declared that the Biden administration has a “playbook” for federal development: “delay, distract and deflect” (eenews ). Biden also blocked oil drilling in Alaska, which will curb oil production in the future (washingtonpost ). Biden`s green politics encourages hedge funds and other who purchase oil futures as a bet on rising oil prices (cnbc ).
It`s kind of funny. The Biden administration who laments about the "alleged" monopolists Amazon, Google & Meta supports the monopolist behavior of a foreign power. This is a example of bad government politics.
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