the price of oil on international markets is not high enough for them. oil and energy leaders are gathering again today in vienna for the latest opec summit. the biggest and most powerful player saudi arabia started this week with the news it s extending its voluntary output cut of1 million barrels per day to august. russia is making a similar move. but these cuts are failing to boost energy prices. why? jonathan robinsonjoins me now to explain he is global power & energy research director at frost and sullivan. just talk us through our oil is at the moment. just talk us through our oil is at the moment. oil, despite the cuts in production, at the moment. oil, despite the cuts in production, oil at the moment. oil, despite the cuts in production, oil prices- cuts in production, oil prices have stayed relatively low in what we have seen historically in the past year, 1.5 years. there are a few specific reasons for that. chinese demand, industrial out would, increasing
last august the us passed the chips act, specifically aimed at growing domestic chip making business and blocking china s industry. beijing responded in turn including restricting export of chip making materials to the usand it all comes in the same week as export controls kick in in the netherlands, preventing one of the world s biggest makers of chips, asml, from exporting without a license, something china has complained about and analysts say would only make us china relations worse. this comes as president biden prepares to visit vietnam. along with the united states trying to increase production at home, vietnam is seen as an alternative destination for the united states to outsource manufacturing, rather than putting all of its eggs on the one basket that is china.
monica, what can we expect to come from this visit? it is already going, it is a bit tense to begin with. these companies are now racing to secure supplies as these tensions ramp up between the us and china. starting next month, companies that need these will need a special license to export gallium and geranium from china, which is the world s biggest producer of these metals. and a former commerce minister has been speaking to china s state run media, and he was saying that these kind of controls for chip making materials isjust chip making materials is just the chip making materials isjust the start, and the country has more sanction measures and tools in its tool box. china s expo control of chip making materials was well thought out and i have a punch, he was saying, so again setting the stage forjanet yellen s visit, which has been highly anticipated and has taken