Saudi Arabia said it was asked by the Biden administration to delay its decision on oil output by a month.
The Saudis declined, and in early October OPEC+ announced its largest supply cut since 2020 to the tune of 2 million barrels per day. That means tighter supplies and higher prices at a time of high inflation and worries of a global recession, which angered U.S. lawmakers.
The decision would have been delayed until after the election.
The Saudi government defended its move in a statement dated Wednesday.
According to the Government of the Kingdom's consultation with the US Administration, postponing the decision for a month would have been bad for the economy.
In response to the Saudi claims, the Pentagon spokesman John Kirby accused the kingdom of aiding Russia's revenues and making it harder for the West to impose sanctions on Moscow.
In recent weeks, the Saudis conveyed to us their intention to reduce oil production, which they knew would increase Russian revenues and undermine the effectiveness of sanctions. Kirby said that's the wrong direction. We showed Saudi Arabia that there was no reason to cut production targets, and that they could wait for the next meeting of the group to see how things develop.
Kirby claimed that other members of the Organization of the Petroleum Exporting Countries opposed Saudi Arabia's move and that the Biden administration would reexamine its relationship with Riyadh.
He said that other countries in the group disagreed with the Saudi decision, but were coerced to support it. We are reexamining our relationship with Saudi Arabia in light of these actions and will look for signs of where they stand in combatting Russian aggression.
The president said on Tuesday that there would be consequences for Saudi Arabia's oil production cut. This was seen as a snub by many in Washington.
The U.S. has urged the cutting of military sales to Saudi Arabia, America's top weapons buyer.
Riyadh denied accusations of making politically motivated moves.
The Government of the Kingdom of Saudi Arabia would first like to reject the statements that are not based on facts, and that are based on portraying the decision out of its economic context. The Saudi government said that the decision was unanimous.
The Kingdom believes that the outcomes of the meetings are not based on a single country's decision. Maintaining balance of supply and demand in the oil markets is one of the factors used to calculate these outcomes.
Both parties suggest the other is failing to uphold their end of the bargain in a friendship broadly based on the principle of energy for security
They show how little control the US has on energy policy.
James Swanston, Middle East and North Africa economist at Capital Economics, said in a client note that the relationship between Saudi Arabia and the US has soured.
The Saudi government emphasized the importance of its relationship with the US.
The Kingdom believes that its relationship with the United States of America serves the common interests of both countries.
The Kingdom stresses the importance of building on the pillars of the relationship between the US and Saudi Arabia. The pillars include mutual respect, enhancing common interests, actively contributing to preserve peace and security, and achieving prosperity for the people of the region.
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