Biden administration asks Saudi Arabia to delay OPEC decision by one month

US President Joe Biden welcomes Saudi Crown Prince Mohammed bin Salman at the Al Salam Palace in Jeddah, Saudi Arabia on July 15, 2022. The Anadolu Agency | Anadolu Agency | Getty Images DUBAI, UAE — The Biden administration has asked Saudi Arabia, the de facto leader of oil production group OPEC, to delay a decision on oil production by a month, the kingdom said in a statement. Saudi Arabia declined and OPEC+, which initially included non-OPEC oil exporters like Russia in October, announced the largest production cut since 2020 to 2 million barrels per day starting in November. This means supply shortages and rising prices at a time of already high inflation and fears of a global economic downturn, and US lawmakers are calling for a ‘re-evaluation’ of relations with the Kingdom of Saudi Arabia. The Saudi government said in a statement on Wednesday that all OPEC decisions were based on economic prospects and needs. The Saudi government, in ongoing consultation with the U.S. administration, has suggested that all economic analyzes suggest that delaying the OPEC+ decision for a month would have had negative economic consequences,” the statement said. (John Kirby) reorganized the exchange and accused Saudi Arabia of helping Russia imports. And the war in Ukraine is hampering the impact of Western sanctions on Moscow.” In recent weeks, Saudi Arabia has said: They have informed us, both privately and publicly, of their intention to increase Russian imports and reduce oil production, which they know will weaken the effectiveness of the sanctions. “It’s the wrong way,” Kirby said. “We have presented an analysis that Saudi Arabia has no market base to cut production targets and can easily wait for the next OPEC meeting to see how things develop.” , other OPEC members opposed Saudi Arabia’s move and repeated the Biden administration’s promise to reconsider its relationship with Riyadh. “As the president said, we are reassessing our relationship with Saudi Arabia in light of these actions and will continue to look for signs of Saudi Arabia’s position in fighting Russian aggression,” he said. He said there would be “consequences” for Saudi Arabia’s oil production cuts that it is carrying out in cooperation with other OPEC members and non-OPEC allies such as Russia. n Washington saw this as ridicule and a blatant display of Moscow favoritism, and US lawmakers are calling for an end to military sales to Saudi Arabia, America’s largest arms buyer, and encouraging the passage of an antitrust bill that will follow OPEC. Riyadh has rejected accusations of politically motivated action.” The Saudi government first made the OPEC+ decision not based on facts and in its purely economic context. “This decision is unanimous by all OPEC+ member states,” the Saudi government said in a statement. “The Kingdom confirms that the results of the OPEC+ meeting are adopted through consensus among member countries and are not based on unilateral decisions.” It is based on economic considerations taken into account.” It highlights the escalating tensions in the nearly 80-year-old US-Saudi relationship, as suggested by both sides. In a friendly relationship based on the principle of energy for security, the end of the negotiations has not been kept. They also highlight how little control the US has over Saudi and OPEC energy policies. Middle East and North African economist James Swanston at London-based consulting firm Capital Economics, in a client note on Thursday, said, “Saudi Arabia is clearly moving away from the US trajectory. However, the Saudi government continues to stress the importance of its relationship with the United States.” About “The kingdom [views] Saudi Arabia said in a statement that “the relationship with the United States is a strategic relationship that serves the common interests of both countries.” over the past 80 years. These pillars include mutual respect, promoting common interests, actively contributing to maintaining regional and international peace and security, responding to terrorism and extremism, and achieving prosperity for local people.”
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