The new decision of OPEC Plus to reduce oil production by 2% has caused tensions in the relations between Saudi Arabia and the United States.
According to the International group of Pak Sahafat news agency, The recent decision of the OPEC Plus group to reduce oil production by 2% has led to tension in the relations between Riyadh and Washington as close allies, and the administration of “Joe Biden” has said that it is considering its options regarding Saudi Arabia.
OPEC+ members agreed on Wednesday, October 5, to cut oil production by 2 percent. According to that agreement, it was decided that 2 million barrels of oil will be sent to the market less per day. A policy that will increase the price of oil in the world markets in the first place, and according to America, in this critical situation of the world, it will end up in favor of Russia in the Ukraine war.
US Secretary of State Anthony Blinken said in a joint press conference with his Peruvian counterpart: “Despite America’s high demand for buying oil, Saudi Arabia and its partners in OPEC+ have reduced their production, and regarding relations with Saudi Arabia, we are examining various options in response to this country’s actions; In this regard, we have intensive consultations with the Congress.”
The US Secretary of State did not mention the measures that Washington intends to take in response to OPEC Plus, but some politicians in the US have suggested that the US cut off its arms aid to Saudi Arabia.
Despite this, the Deputy Spokesperson of the US State Department tried repeatedly to avoid answering the reporters’ question at the press conference last night about whether cutting off arms aid to the Saudis is one of the possible options of the Biden administration.
A reporter asked Vident Patel, the deputy spokesperson of the US Department of State, whether cutting off arms exports is one of Biden’s options for Saudi Arabia, and he replied: I emphasize what our colleagues in the White House have said before and say that OPEC+’s decision was short-sighted.
The reporter asked: Can you explain more about what the US will decide to answer it? Patel said: I don’t want to discuss any specific options here. As I have heard from various institutions, there are various tools in the hands of the president and the government. Of course, the release of strategic oil reserves, as mentioned in Jake Sullivan’s statement yesterday [is among the options.] In addition, several other options are on the table.
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Previously, “Jean-Pierre”, the spokesman of the White House, said in a press conference on Wednesday evening, in response to a reporter’s question about OPEC Plus’ decision: OPEC’s decision to reduce oil production is a short-sighted decision, even when the world is facing the negative effects of Russia’s attack on Ukraine.
He added: If this decision has significant price effects, those effects will be on low-income and middle-income countries. The President’s efforts to lower fuel prices have made progress. Since this summer, fuel prices have dropped by about $1.20.
The spokesman of the White House also stated that with the decision of US President Joe Biden, another 10 million barrels of US strategic oil reserves will enter the market next month.
Abd al-Aziz Bin Salman, Saudi Oil Minister, pointed out the passivity of central banks around the world and their “delayed” actions in dealing with rising inflation, stating that it was necessary for OPEC+ to play an active role in this regard.
OPEC+ is a group of 13 OPEC member countries and 11 other oil producers in the world, headed by Russia, which have been cooperating since the end of 2016, and it is said that Saudi Arabia, as the largest producer of OPEC and the “de facto” leader of this organization, plays an important role.
However, Saudi Arabia, denying any “collusion” with Russia to artificially increase prices, says that cutting the supply of 2 million barrels of oil per day, which is equivalent to 2% of global supply, is necessary to respond to the increase in interest rates in the West and also to curb the weak global economy.
Despite this, the White House spokesperson accused OPEC+ of aligning with Russia. He said: As far as the issue is related to Russia… sees the issue is clear. It is clear that OPEC+ is lining up with Russia. I will leave the issue here.
These statements show that the new OPEC+ decision has widened the gaps between Washington and Riyadh. The relations between the two countries were already tense due to issues related to the events of September 11, the assassination of Jamal Khashoggi and the war in Yemen. Now it remains to be seen if America will increase these gaps by responding to the decision of OPEC Plus.