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Saudi Arabia agrees to boost oil production after Joe Biden visits kingdom, report says

Jul 16, 2022, 19:09 IST
Business Insider
US President Joe Biden meets Saudi Crown Prince Mohammed bin Salman on Friday.Bandar Algaloud/Reuters
    • Saudi Arabia will increase oil production to 13 million barrels a day, 24Live reported.
    • Saudi Crown Prince Mohammed bin Salman called for greater co-operation with the US.
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Saudi Arabia has agreed to boost oil production following President Joe Biden's meeting with the Saudi Crown Prince, according to a report by a Saudi news site.

24Live tweeted that Saudi Crown Prince Mohammed bin Salman had agreed to boost production by about 4 million barrels a day to 13 million barrels during a speech at the opening of a summit with Arab leaders.

The announcement came as bin Salman called for a closer strategic relationship between its Western allies and the US.

Biden is visiting Saudi Arabia to try to improve relations with the kingdom, having previously pledged to make the country a "pariah state" for its alleged involvement in the 2018 murder of journalist Jamal Khashoggi. The President said he reiterated that assertion to bin Salman after he denied personal responsibility for the killing.

Saudi Arabia's importance as an energy producer has risen following Russia's invasion of Ukraine that has sent oil prices soaring.

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The Middle Eastern nation is the top exporter of oil to the US, accounting for 5% of petroleum imports and 6% of its crude imports.

According to Opec, Saudi Arabia produced around 9 million barrels of oil a day in 2021. It and other nations in the oil cartel cut production when the pandemic struck and demand plunged, agreeing to gradually increase production over several months to regulate prices.

Oil spiked above $120 a barrel after Russia invaded Ukraine, but have fallen back to trade below $100.

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