Saudi Arabia said the U.S. urged it to delay a decision on oil production cuts. The risk of a spike in gas prices was reduced by a delay.
The Saudi Foreign Ministry didn't say anything about the elections in the U.S. The U.S suggested that the cuts be delayed. The cuts were announced at the meeting of the Organization of the Petroleum Exporting Countries.
It would have been pointless to hold off on the cuts at a time when they wouldn't have much effect on the price of gas.
Higher gasoline prices have been a key driver of inflation in the U.S. and around the world due to rising oil prices. The rising prices of gas could affect voters. He warned that the relationship with the kingdom could be reexamined.
Saudi Arabia issuing a lengthy statement shows how tense relations are between the two countries despite the White House rejecting any link to the elections. Ties have been strained since the killing and dismemberment of a Washington Post columnist in Saudi Arabia, which the US believes was ordered by the Saudi crown prince. Russia can use higher energy prices as a weapon against the west.
The Saudi Foreign Ministry said that the kingdom had been talking to the US about postponing the cut.
According to the ministry, all economic analyses show that postponing the decision for a month would have been bad for the economy.
According to a Wall Street Journal article this week, the U.S. tried to delay the production cut by the Organization of the Petroleum Exporting Countries. The Saudi officials were quoted in the Journal as saying that the move was a political ploy by Biden.
There were attempts to link the kingdom's decision to Russia's war onUkraine.
While it strives to preserve the strength of its relations with all friendly countries, it reiterates its rejection of any dictates, actions, or attempts to distort its noble objectives to protect the global economy from oil market volatility. Resolving economic challenges require the establishment of a non-politicized constructive dialogue and the consideration of what serves the interests of all countries.
The United Nations General Assembly passed a resolution Wednesday condemning Russia for its annexation of four Ukrainian regions and demanding that it reverse course.
After prices crashed below $30 a barrel in 2016 due to rising American production, the Organization of the Petroleum Exporting Countries needed non-member Russia to push through a production cut. The 2016 agreement gave birth to the so-called OPEC+, which joined the cartel in cutting production in order to boost prices.
After the coronaviruses caused oil prices to go into negative territory, air travel and economic activity began to rebound. Oil- producing nations are worried that the price of crude could fall as a result of inflation.
Biden fist-bumped Prince Mohammed before a meeting when he traveled to the kingdom in July. The kingdom supports keeping oil prices high in order to fund Prince Mohammed's plans for a $500 billion desert city.
The repercussions for Saudi Arabia were warned by Biden.
There will be consequences for what they did with Russia. I don't know what I'd consider and what I have in mind. There will be repercussions.
If you sign up for the email list, you will be kept up to date with our biggest features, exclusive interviews, and investigations.
All Rights Reserved © 2024
