Biden escalates feud with Saudi Arabia, warning of ‘consequences’ for cutting oil production in coordination with Russia
- Biden made an nonspecific threat to Saudi Arabia after its decision to cut oil output.
- The call, which will drive up prices, was made as part of the OPEC+ grouping including Russia.
President Joe Biden said Saudi Arabia will face “consequences” for cutting oil its production targets, something that he said benefits Russia.
The OPEC+ group of oil producing nations said last week that it would cut oil production by two million barrels a day, a move which enraged the White House, which has been struggling to tame inflation and decrease gas prices.
The OPEC+ group includes Saudi Arabia and Russia — the two biggest oil producers after the US itself — as well as numerous other oil-producing countries.
Reducing supply tends to force prices higher because there is less to go around.
Biden spoke warned Saudi Arabia in an interview with CNN on Tuesday: “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 already had a fraught relationship with Saudi Arabia.
The two nations’ long alliance has been increasingly fractious in recent years. Issues include Saudi human-rights abuses — particularly the killing of Jamal Khashoggi — US support for a nuclear deal with Iran, and Biden’s initial hostility to Crown Prince Mohammed bin Salman, which was partially rowed back in a recent visit.
An increase in oil prices benefits Russia at a time when the US and Western nations are trying to punish the country for its invasion of Ukraine.
White House spokesperson Karine Jean-Pierre responded to the news of the cuts last week by saying it was “clear” that OPEC+ was “aligning with Russia”.
US officials warned Saudi Arabia that it would be seen as taking Russia’s side if OPEC+ cut its production, but Saudi Arabia dismissed the warnings and proceeded, The Wall Street Journal reported.
Russia on Sunday praised OPEC+ for cutting its oil production targets.
Saudi Arabia’s foreign minister said on Tuesday that the OPEC+ decision was taken only for economic reasons, Reuters reported.
Biden’s hardened stance on Saudi Arabia is a big shift from his repeated engagement with the Kingdom and Crown Prince Mohammed bin Salman.
Some Democratic lawmakers said the OPEC+ decision shows that the US needs to reconsider its relationship with Saudi Arabia, which receives extensive military assistance from the US.
John Kirby, spokesman for Biden’s national security council, said on Tuesday that Biden was willing to start re-evaluating that relationship immediately.
