After Saudi Arabia’s decision to cut oil output, President Biden says there will be consequences for the kingdom. His remarks come after a series of Democratic lawmakers called for a halt to cooperation with Saudi Arabia. The decision to cut oil production by the Riyadh-led OPEC+ alliance is a clear sign that OPEC+ is serious about lowering global prices.
Biden’s decision to review ties with Saudi Arabia
Vice President Joe Biden has indicated that he plans to review US ties with Saudi Arabia in light of the oil output cuts. The announcement follows a number of senior Democrats’ calls for a review of US ties with the oil-producing nation. These lawmakers have called for an end to arms sales to Saudi Arabia in response to the cuts. The decision is not likely to come without consequences for the Kingdom.
The move comes amid heightened tensions in the U.S.-Saudi relationship and the recent murder of Saudi journalist Jamal Khashoggi. Biden has said that he would consult with the congressional delegation before deciding how to proceed with the country. But he has not outlined a timetable or offered any alternative options.
Senators on the Senate Foreign Relations Committee have urged the Biden administration to pause arms sales to Saudi Arabia. They have also called for a freeze on the sales of spare parts, support services, and logistical support to the Middle Eastern nation. Menendez said the United States should not play both sides in the conflict.
The cuts were imposed after the OPEC+ oil producing alliance agreed to cut oil production by two million barrels per day. The decision was widely expected to raise global oil prices. The US has been criticizing the OPEC+ alliance for the decision. Critics say that the production curbs will only increase oil prices and help Russia’s bottom line.
The US government is looking for ways to punish Saudi Arabia for its decision to cut oil production in order to prop up oil prices. While President Obama is not likely to take action on the immediate retaliation, he is indicating that congressional action will be necessary once the midterm elections are over.
Reaction to OPEC+ decision
Saudi Arabia has vowed to face consequences for its decision to lower oil output, but it’s not entirely clear how this will come about. The Saudi foreign minister insists the decision is not a political move and that the intention behind it is purely economic. Still, the Saudis have made a point of showing their willingness to engage in business with the West.
As a result, the United States is threatening to cut military and economic aid to Saudi Arabia in response to the decision. Despite the threats from the president and other senior Democrats in Congress, the Saudis have resisted these threats. They say the cuts will raise global oil prices and increase revenue for Russia, which is a major OPEC+ member.
In July, Biden visited Saudi Arabia and met with Crown Prince Mohammed bin Salman. Biden had promised to make Saudi Arabia an international “pariah” for the murder of journalist Jamal Khashoggi. But the OPEC+ decision comes at a sensitive time for Biden and his party. As the price of gasoline continues to rise, Biden has pledged to impose consequences on the kingdom.
The US has long maintained strategic ties with Saudi Arabia. Their cooperation in the Middle East has advanced stability. Bilateral military cooperation is also beneficial to both countries. However, the recent rocket attacks from the Houthi rebels in Yemen are raising concerns about the safety of Saudi citizens. As the United States seeks to prevent gas price hikes, it must make sure it protects its allies.
The US President is expected to take action soon. But he hasn’t specified when he will do so. If he doesn’t act soon, he may have to face tough criticism from Democratic lawmakers.
Reaction to Khashoggi murder
The president-elect has said the United States will evaluate its relationship with Saudi Arabia in light of the recent Opec decision to cut oil output. But he has not specified what kind of consequences would apply. Biden has not named a deadline for the formal review. Nor has he named any options.
He did, however, suggest that his administration would act soon. He also said the US would be helping Ukraine in any way possible. The United States remains the Kingdom’s most important ally and strategic partner. But there is a trade-off. The US could cancel its participation in a working group of Gulf Cooperation Council nations and suspend arms sales to Saudi Arabia.
While the president is urging OPEC+ members not to cut back, he is also promising to isolate Crown Prince Mohammed and the ruling family. But he also wants to consult with Congress before imposing any punishment. A rift between the United States and Saudi Arabia could shake the oil market and drive up oil prices before the midterm elections.
OPEC+ oil cartel recently announced a reduction in oil output, over U.S. objections. Biden views this as a stab in the back at his energy-rich partner. However, the White House says the cut is necessary to pay for the war in Ukraine. Meanwhile, outraged US lawmakers are calling for a freeze on cooperation with Saudi Arabia.
Opec+ includes Saudi Arabia and Russia. By cutting production, OPEC+ will help prop up oil prices. This would be bad news for the US economy. This could lead to higher gasoline prices and further destabilization of the global economy.
Reaction to retaliatory measures
The Biden administration urged OPEC+ members not to cut back on oil production, but Saudi Arabia refused. They privately assured the US administration that they would increase production if necessary. The Saudis also argued that the decision to delay the production cut would have negative economic consequences. However, US officials reframed their claims, accusing the kingdom of assisting Russian revenue and hampering Western sanctions on Moscow. As a result, the Biden administration has vowed to reassess its relationship with Riyadh.
In addition to the recent rise in oil prices, the Saudis are facing rocket threats from Huthi rebels in Yemen, which they have allegedly been supplying with Iranian technology and equipment. Despite the risks, Biden has promised to investigate alternatives to prevent gas price increases and said he would consider further releases of oil from the U.S. Strategic Petroleum Reserve and export restrictions. Democratic lawmakers have backed this plan, including Senator Menendez of New Jersey, who has called on the administration to stop all cooperation with Riyadh.
US President Joe Biden has also warned that “there will be consequences” for the Saudis if they do not change their ways. Biden said he will “reassess our relationship with Saudi Arabia” and “reconsider our arms sales” to the country.
The Saudis are the world’s biggest oil exporters and have defied US pressure to curb their production. However, critics say that the production cuts will only increase prices worldwide and provide more revenue to Russia. They argue that the US government should have delayed the decision until after the midterm elections.
Future of ties with Saudi Arabia
The United States is reevaluating its relationship with Saudi Arabia after the oil-producing kingdom teamed up with Russia to cut oil output. President Biden said that consequences would follow Saudi Arabia’s decision to cut production. He also said he would take action to punish the Saudi government for a “cowardly” act.
The US President warned Saudi Arabia that the sanctions would be a “costly mistake.” But his words come after his advisers urged him to resume contacts with the kingdom, which he has said is vital for bolstering the energy markets. Biden visited Jiddah in Saudi Arabia earlier this summer, and U.S. officials said the kingdom would increase production in the fall to cut gasoline prices.
The Saudis have defended their decision to cut production, saying they are working to ensure the sustainable oil market. However, President Obama has made clear that he will work with Congress to resolve the issue, despite the disagreements over the Saudis. Meanwhile, Senate Democrats have urged him to act on the situation.
On Monday, Biden said that he is exploring options to respond to Saudi Arabia’s decision to cut oil output. Biden said he would not say what he intends to do in detail, but he said the U.S. will not let the Saudis “win by denying their customers’ energy needs.”
The US and Saudi Arabia have strained relations for many years, but President Trump has put that behind them. Now, Riyadh accounts for about a quarter of all U.S. arms exports. In addition to arms sales, the US and Saudi Arabia have also stepped up military cooperation. The relationship has improved security in the Middle East. Bilateral military cooperation serves both countries’ interests.
