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Biden escalates feud with Saudi Arabia, warning of 'consequences' for cutting oil production in coordination with Russia

Oct 12, 2022, 20:53 IST
Business Insider
Saudi Crown Prince Mohammed bin Salman (L) and US President Joe Biden (R).Pool via REUTERS/Kevin Lamarque; REUTERS/Andrej Isakovic
  • 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.
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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."

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"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".

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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.

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John Kirby, spokesman for Biden's national security council, said on Tuesday that Biden was willing to start re-evaluating that relationship immediately.

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