March 16, 2022

IntelBrief: U.S. Engages Controversial Leaders to Stabilize Global Oil Market

AP Photo/David Zalubowski

Bottom Line up Front

  • The United States has responded to the Ukraine invasion-induced oil price spike with diplomatic outreach to several controversial oil producers.
  • Increased oil production abroad would ease upward pressure on world oil prices more quickly than would promoting more U.S. domestic production.
  • Saudi Arabia, Venezuela, and Iran have significant spare oil export capacity, but outreach to the governments of all three requires abrupt U.S policy change.
  • Russia will likely try to frustrate the U.S. overtures to all three oil producers.