Saudi Arabia rejects framing OPEC+ oil cut decision as political

Saudi Arabia has rejected as “not
based on facts” statements criticising the kingdom after an
OPEC+ decision last week to cut its oil production target
despite US objections, saying it serves the interests of both
consumers and producers.

The OPEC+ decision was adopted through consensus, took into
account the balance of supply and demand and was aimed at
curbing market volatility, the Saudi Foreign Ministry said in a
statement early on Thursday.

President Joe Biden pledged earlier this week that “there
will be consequences” for US relations with Saudi Arabia after
OPEC+ said last week it would cut its oil production target by two million barrels per day.

OPEC+, the producer group comprising the Organization of the
Petroleum Exporting Countries (OPEC) plus allies including
Russia, announced its new production target after weeks of
lobbying by US officials against such a move.

The United States accused Saudi Arabia of kowtowing to
Moscow, which objects to a Western cap on the price of Russian
oil in response to its onslaught on Ukraine.

The Saudi statement, quoting an unnamed
official, stressed the “purely economic context” of the oil cut.

The statement also referred to consultations with the United
States in which it was asked to delay the cuts by a month.

READ MORE:
Biden warns of ‘consequences’ for Saudi Arabia over OPEC+ oil cuts

US-Saudi ties

The OPEC decision was widely seen as a diplomatic slap in the face since Biden travelled to Saudi Arabia in July and met with Prime Minister Mohammed bin Salman.

The OPEC+ move has raised worries in Washington about the
possibility of higher gasoline prices right before the November
US midterm elections, with Biden’s Democrats trying to retain
their control of the House of Representatives and Senate.

“The Kingdom clarified through its continuous consultations
with the US administration that all economic analyses indicate
that postponing the OPEC+ decision for a month, according to
what has been suggested would have had negative economic
consequences,” the statement said.

Saudi Arabia also said it views its relationship with the
United States as a “strategic one” and stressed the importance
of mutual respect.

The partnership between the United States and Saudi Arabia was sealed after World War II, with the US providing the kingdom with military protection in exchange for American access to oil.

Biden said last week that he would look at alternatives to prevent gas price hikes.

READ MORE: Biden mulls OPEC response amid questions over Saudi arms sales