Government officials and experts in Washington and the Gulf said the OPEC + group’s decision to cut oil production this week despite fierce American opposition has increased pressure on the already strained relations between the White House under President Joe Biden and the Saudi royal family, which was once one of Washington’s strongest allies in the Middle East.
In interviews with Reuters, more than 10 sources said the White House lobbied hard to stop OPEC from cutting production.
Biden hopes to prevent a further increase in gasoline prices in the United States ahead of the midterm elections in which his Democratic Party is struggling to maintain a majority in Congress. Washington also wants to limit Russia’s energy revenues during the war in Ukraine.
The US administration has been putting pressure on OPEC + for weeks. In recent days, senior US officials in the energy, foreign policy and economic sectors have urged their overseas counterparts to vote against production cuts, according to two sources familiar with the discussions.
Amos Hochstein, Biden’s chief energy envoy, accompanied by National Security Officer Brett McGurk, and U.S. Special Envoy for Yemen, Tim Lenderking, traveled to Saudi Arabia last month to discuss of energy issues, including the OPEC + decision. But they failed to prevent production cuts, just as Biden did after his visit to Saudi Arabia in July.
A source familiar with the discussions said US officials “tried to describe him as ‘us versus Russia'” and that they told their Saudi counterparts they wanted to choose.
He added that this method failed, noting that the Saudis responded that if the US wanted more oil in the markets, it should start increasing its own production.
The United States is the world’s largest oil producer and also the largest consumer of crude oil, according to data from the US Energy Information Administration.
The Saudi government media office did not respond to requests sent by email from Reuters to comment on the discussions.
“First of all, we care about the interests of the Kingdom, then the interests of the countries that trusted us and were and still are members of OPEC and the OPEC + group,” the Saudi Energy Minister told Saudi TV Wednesday. Prince Abdulaziz bin Salman. .
He added that OPEC takes care of its interests “and the interests of the world because we have an interest in supporting the development of the global economy and supplying energy in an optimal way”.
Washington’s handling of the Iran nuclear deal issue and its cessation of support for the Saudi-led coalition’s offensive military operations in Yemen angered Saudi officials, as well as US actions against Russia after the invasion of Yemen. Ukraine in February 2022.
Prince Abdulaziz told Bloomberg Network after OPEC’s decision that US pressure to cap Russian oil prices creates a state of uncertainty due to the “lack of detail and clarity” on how to implement it.
A source briefed by Saudi officials on the matter said the kingdom views this as “a non-market-governed pricing mechanism that can be used by a coalition of consumers versus producers.”
The sale of 180 million barrels of oil from the US strategic reserve under Biden’s direction in March put oil prices under pressure.
In March, OPEC + said it would stop using data from the International Energy Agency, a Western oil observer, due to concerns led by Saudi Arabia that the United States would have too much influence on it. it.
Biden on Thursday described the Saudi decision as “disappointing”, adding that Washington could take further action on the oil market.
“It is clear that OPEC + is on Russia’s side,” White House spokeswoman Karen Jean-Pierre said Wednesday. He did not explain how the production cut would affect US-Saudi relations.
In the US Congress, Biden’s Democrats called for the withdrawal of US forces from Saudi Arabia and talked about the recovery of weapons.
Democratic Senator Chris Murphy tweeted: “I thought the purpose of selling weapons to the Gulf states, despite their human rights abuses, senseless war in Yemen, action against US interests in Libya and Sudan. , etc., were that when an international crisis occurs, the Gulf should prefer America to Russia / China.
The Crown Prince and Biden
Weeks after Biden took over the US presidency, Washington released a report linking the killing of journalist Jamal Khashoggi in 2018 and Crown Prince Mohammed bin Salman.
The prince, the 86-year-old son of King Salman, denied having ordered the murder.
The prince became prime minister last month, a situation his lawyers argue in a US court that grants him immunity from prosecution for Khashoggi’s murder.
Biden’s trip to Jeddah in Saudi Arabia in July to attend a Gulf Summit was meant to mend ties, but he was also highly critical of the Crown Prince for Khashoggi’s murder.
Ben Cahill, a researcher at the Center for Strategic and International Studies, said the Saudis hope the cuts will allow the OPEC + group to control oil prices and ensure sufficient oil revenues to protect their country from recession.
“Macroeconomic risks are steadily worsening, so they have to respond. They know the cuts will anger Washington, but they are managing the market,” Cahill added.
