Biden Pledges ‘Consequences’ For Saudi Arabia Over Oil Production Cuts

Saudi Arabia will face consequences for joining with Russia and other major energy producers to slash oil production, a move that has caused fears of an oil price spike and led some members of Congress to suggest cutting U.S. arms sales to the Saudi.

In an interview with Jake Tapper, the president said he would discuss how to respond to the production cuts announced by the Saudi-led group of oil-exporting countries.

There are going to be some consequences if the Senate goes ahead with a proposal to freeze all arms sales to Saudi Arabia.

Biden defended his decision to travel to Saudi Arabia in July and meet with the crown prince, saying he was attending a broader summit with the leaders of several other countries.

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The bill would ban all arms sales to Saudi Arabia for one year. In the past, members of both parties have pushed to curtail Saudi weapons sales due to Saudi Arabia's role in the Yemen civil war, but the latest bill's fate in Congress is not yet clear.

Key Background

Saudi Arabia and Russia will reduce oil production by 2 million barrels per day in November. The decision is expected to push up global oil prices, which went up after Russia invaded Ukraine earlier this year. Saudi officials have insisted the production cuts are designed to bring stability to energy markets, but the Biden Administration has excoriated the move, which could drive up already-high gas prices and increase inflation.

The relationship between Biden and Saudi Arabia has been difficult. He criticized Saudi officials for their role in the murder of a critic of the regime and promised to treat the country as a pariah. As gas prices went up, Biden wanted to reset the U.S.-Saudi relationship. During their July meeting, the president and the crown prince talked about delivering adequate oil supplies, but Saudi Arabia didn't make a promise to boost exports. In August, Biden signed off on a multi-billion-dollar missile sale to Saudi Arabia, in line with a longstanding practice of supplying arms to the Saudi military, which the U.S. views as a key regional security partner.