The US president has cautioned Riyadh that their new approach in OPEC+ will have “consequences.” Despite the US rejections, a worldwide cartel of oil-producing nations led by the Saudis and Moscow stated that they would reduce oil output.
Biden’s comments follow the key Senate Foreign Relations Committee chief’s firm stance against Riyadh the previous day. Washington must promptly halt all collaboration with Saudi Arabia, including military sales, according to Bob Menendez.
In defiance of US pressure, the OPEC+ announced last week that it will cut its daily oil output objectives by two million barrels. According to Riyadh, the policy was adopted to balance the oil market rather than raise prices.
“There’s going to be some consequences for what they’ve done with Russia. I’m not going to get into what I’d consider and what I have in mind. But there will be, there will be consequences,” Biden asserted in a talk with local media.
The output restraints, however, are criticized for pushing up oil prices internationally. That would increase Russia’s earnings and allow it to continue funding the conflict in Ukraine despite economic sanctions by the Western world. Additionally, the action was regarded as a political blow for the Biden office as it gears up for the crucial midterms in one month.
The Saudi foreign ministry, by the way, justified the decision. According to Prince Faisal bin Farhan, the decision was made jointly by the member nations of the [organisation] and was strictly commercial. “OPEC+ members acted responsibly and took the appropriate decision,” Prince Faisal told the local television.
Ned Price, a spokesman for the American Department of State, claimed that Washington is “reviewing” its ties with Riyadh. To reach a final conclusion, the administration is engaging with politicians in Washington and friends overseas.
OPEC+, A Window to the New World
Although Saudi Arabia emphasized that all 23 OPEC+ countries supported the cut, Abu Dhabi and Baghdad reportedly had reservations, according to a Financial Times story. The British daily cited the same sources when it stated that the UAE’s request for a postponement failed to obtain support. Suhail al-Mazrouei, the UAE’s minister for energy, stated that the choice was “technical, not political,” after the group’s meeting in Austrian capital.
In July, Biden visited Saudi Arabia and had a meeting with Crown Prince Mohammed bin Salman. Despite Biden’s pledge to declare the kingdom a global “pariah” after the 2018 murder of writer Jamal Khashoggi, the visit took place under fierce economic condition.
The ties between the US and Saudi Arabia is “strategic,” according to a statement released by the Saudi embassy in Washington. The Office says it has improved the security and stability of the Middle East and the world.
Others who support Riyadh have asserted that the US is not favouring Riyadh in any way by maintaining their security partnership with Washington.
John Kirby, a spokesman for the White House National Security Council, also said that Biden is “open” to review relations with Riyadh. “And certainly in light of the OPEC decision, I think that’s where he is, and he’s willing to work with Congress to think through what that relationship ought to look like going forward,” Kirby said.
“Our actions are aimed at ensuring stability in global energy markets to make both consumers of energy resources and those who deal with production and supplies feel calm, stability and confidence,” this was one of the first responses by the Russian president Vladimir Putin to the backlash against OPEC+ decision. Putin’s claims have the color of western claims in years following the cold war.