Strategic Reserves and Domestic Production: Unpacking US Options for Oil Price Fluctuations
The latest data from the EIA, US Energy Information Administration, suggests that the US had been the largest producer of crude oil in 2023, despite turning to other sources to boost the global oil production. It has been more than 4 years since the US became a net exporter of crude oil. The data explicitly shows that the US retains the crown for the largest production, while pushing both Russia and Saudi Arabia down to the second and third place respectively. As of December 2023, the US accounted for 12.9% of the global oil production. The same figures for Russia and Saudi Arabia were 10.1% and 9.7% respectively. The contribution from the UAE, a close ally of the Kingdom, was just 3.4%. In this context, the reported reluctance of lowering the quota in line with the more powerful members of the OPEC+ by the UAE is perfectly understandable, as it means losing a big chunk of its vital revenue stream. It is interesting to note the contribution by Iran to the global oil supply: it stood
