Saudis said Biden’s Musharraf asked Saudi Arabia to delay OPEC production cuts for a month

The kingdom said in a statement that the Biden administration had asked Saudi Arabia, the de facto leader of the oil-producing Organization of the Petroleum Exporting Countries, to postpone its decision on oil production for a month.

The Saudis backed down, and in early October OPEC+ – which includes non-OPEC oil exporters such as Russia – Announced the largest supply cut since 2020, to the tune of 2 million barrels per day as of November. That means tight supplies and rising prices at a time of already high inflation and fears of a global recession, which has angered US lawmakers who are now calling for a “reassessment” of relations with Saudi Arabia.

Notably, Biden’s request would have delayed the decision until after the US midterm elections.

In a statement on Wednesday, the Saudi government defended its move and said all OPEC decisions were based on economic expectations and needs.

The statement stated that “the Kingdom’s government has made it clear, through its continuous consultation with the US administration, that all economic analyzes indicate that postponing the OPEC + decision for a period of one month, as has been proposed, will have negative economic consequences.”

In response to the Saudi allegations, Pentagon spokesman John Kirby paraphrased the exchange and accused the kingdom of aiding Russia’s revenue and hampering the impact of Western sanctions on Moscow over its war in Ukraine.

“In recent weeks, the Saudis have informed us – privately and publicly – of their intention to cut oil production, which they knew would increase Russian revenue and reduce the effectiveness of sanctions. This is the wrong direction,” Kirby said. “We have provided Saudi Arabia with an analysis to show that there is no market basis for lowering production targets, and that they can easily wait for the next OPEC meeting to see how things develop.”

Kirby, without giving examples, claimed that other members of OPEC opposed Saudi Arabia’s move, and reiterated the Biden administration’s pledge to reconsider its relationship with Riyadh.

“Other countries in OPEC told us privately that they did not agree with the Saudi decision, but they felt compelled to support the Saudi approach,” he said. “As the president said, we are reassessing our relationship with the Kingdom of Saudi Arabia in light of these actions, and we will continue to look for indications about their position in the fight against Russian aggression.”

Tuesday, President Joe Biden said there would be ‘consequences’ To reduce Saudi oil production, which the kingdom is doing in coordination with other OPEC members and non-OPEC allies such as Russia. Many in Washington viewed this as a blatant disdain for siding with Moscow.

US lawmakers have urged cutting military sales to Saudi Arabia, America’s largest arms buyer, and are encouraging antitrust legislation that would go after OPEC.

Riyadh has rejected accusations of any politically motivated moves.

“The government of the Kingdom of Saudi Arabia would first like to express its total rejection of these statements that are not based on facts, and which are based on portraying the OPEC + decision outside its purely economic context, and this decision was taken unanimously by all. The statement of the Saudi government said “the member countries of the group OPEC +”.

“The Kingdom confirms that the results of the OPEC + meetings are adopted by consensus among member states, and that they are not based on a unilateral decision of one country, and these results are based only on economic considerations that take into account the maintenance of the balance of supply and demand in the oil markets.”

The developments highlight growing tensions in the nearly 80-year-old US-Saudi relationship, with both parties pointing to the other’s failure to commit to the end of a deal in a friendship generally based on the principle of energy for security.

They also highlight how little Washington has control over Saudi and OPEC energy policy.

“The relationship between Saudi Arabia and the US has soured after OPEC+ opted to cut oil quotas – Saudi Arabia is clearly tilting away from the US orbit,” said James Swanston, an economist for the Middle East and North Africa at London-based consultancy Capital Economics. . Thursday client note.

However, the Saudi government stressed the continuing importance of its relationship with the United States

And the kingdom confirms this [views] And she added in her statement that her relationship with the United States of America is a strategic relationship that serves the common interests of the two countries.

The Kingdom also stresses the importance of building on the solid pillars upon which the Saudi-American relationship has been based over the past eight decades, which include mutual respect, promoting common interests, and actively contributing to maintaining regional and international peace and security, and confronting these pillars. Terrorism and extremism and achieving prosperity for the peoples of the region.”