White House to ‘reevaluate’ US relationship with Saudi Arabia
Ahead of the recent OPEC+ oil cut, Washington lobbied Kuwait, Saudi Arabia and the UAE to keep output stable, or even increase production
By News Desk - October 11 2022

(Photo credit: Getty Images)

The US government is reevaluating its relationship with Saudi Arabia, accusing the Gulf state of using its influence in the decision of OPEC+ to reduce oil output by 2 million barrels per day, according to a White House statement released on Monday, 10 October.

In response to the output cuts, National Security Council spokesman John Kirby said in an interview with CNN that “this is a relationship that we need to continue to reevaluate, that we need to be willing to revisit, and certainly in light of the OPEC decision, I think that’s where he is.”

The move is considered a major pressure point on the global economy, especially across the west, which is battling runaway inflation.

According to CNN, US President Joe Biden tried to pressure allies in the Gulf to prevent a major cut in oil production, with White House officials going as far as to describe the move as a potential “hostile act.”

Biden’s most senior energy, economic, and foreign policy officials were tasked with lobbying Kuwait, Saudi Arabia, and the UAE to vote against the proposed output cuts.

“It’s important everyone is aware of just how high the stakes are,” said a senior official to CNN.

Kirby added that “the president is obviously disappointed by the OPEC decision, and is going to be willing to work with Congress as we think about what the right relationship with Saudi Arabia needs to be going forward.”

Meanwhile, Amin Nasser, the CEO of Saudi Aramco, the public oil company of Saudi Arabia, claims that the decision to significantly cut oil output is a reaction to the underfunding of the industry.

“When the global economy recovers, we can expect demand to rebound further, eliminating the little spare oil production capacity out there … that is why I am seriously concerned,” he added.

During a meeting on Tuesday between Russian President Vladimir Putin and Sheikh Mohamed bin Zayed al-Nahyan of the UAE, Putin assured that recent decisions made by OPEC+ were not aimed at anyone in particular, but rather a measure to meet lower demand.

Most Popular