Biden Vows ‘Consequences’ for Saudi Arabia Over Oil Cuts
Pres. Biden on Tuesday warned of "consequences" for US -Saudi relations after OPEC+ announced last week that it would cut its oil production target by up to 2M barrels per day, despite Washington's objections.
Facts
- Pres. Biden on Tuesday warned of "consequences" for US -Saudi relations after OPEC+ announced last week that it would cut its oil production target by up to 2M barrels per day, despite Washington's objections.
- While his options and timetable haven't been detailed, the White House stated that the president is willing to work with Congress to reassess the US relationship with Saudi Arabia. A day earlier, some Democrats in Congress urged any cooperation with the kingdom to be suspended.
- In response, Saudi Arabia's Foreign Minister Prince Faisal bin Farhan praised ties with the US and claimed that the decision to cut oil production was "purely economic and taken unanimously by the group member states."
- These developments come as US officials have criticized the OPEC+ decision, arguing that the move gives leverage to Russia against the West and threatens global economic growth by fueling inflation. Riyadh stressed, however, that the decision wasn't aimed at driving up prices but stabilizing the oil market amid central bank interest rate hikes and a potential global recession.
- US officials had reportedly urged Riyadh and other major Gulf oil producers to delay any decision to cut oil production until November - which is seen by some as a political move by the Biden admin. ahead of the US midterm elections.
- Shortly after Biden visited Saudi Arabia in July, OPEC+ increased its oil output, and the Biden admin. approved a multi-billion dollar weapon sales package to the kingdom.
Sources: Guardian, New York Times, Saudi Gazette, Wall Street Journal, and CNN.
Narratives
- Establishment-critical narrative, as provided by Consortium News. The OPEC+ announcement is not only a slap in Biden's face, but underscores the tectonic geopolitical shifts in West Asia and Russia's growing influence. Instead of reflecting on its own failures, Washington is once again resorting to threats, which will only spur the continued evolution of a multipolar world order.
- Pro-establishment narrative, as provided by The Washington Post. The OPEC+ decision poses numerous risks for the free world. Washington must not give in to the pressure and should continue its plan for a price cap on Russian oil. The Biden administration should avoid any short-sighted response in the run-up to the midterm elections. As with the 1973 oil embargo, this production cut could ultimately prove to be a dangerous boon for the oil cartel.
