Saudi Arabia has indicated that the biden Administration had suggested postponing the decision by the Organization of Petroleum Exporting Countries OPEC and his allies (OPEC+) to reduce its production output by a month, which in his opinion “would have had negative economic consequences”.
Saudi statement: “The government of the Kingdom of Saudi Arabia … has clarified through its ongoing consultation with the US government that all economic analysis indicates that postponing the OPEC+ decision by one month, as proposed, would have had negative economic consequences,” Saudi said -Arabia.
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Saudi Arabia also asserted that it “reaffirms its rejection of any diktat, action or effort that distorts its noble goals of protecting the global economy from oil market volatility.”
Oil prices shot higher after OPEC+’s decision to cut production and moved north Thursday on low pre-winter diesel inventories. That United States Brent Oil Fund BNO closed over 2% higher on Thursday during the Vanguard Energy Index Fund ETF VDE closed over 4% higher.
Why it matters: The Saudi response comes in the President’s entourage Joe Biden He explained that there would be “consequences” for Saudi Arabia if it worked with Russia to reduce oil production, and his associates said he would reassess the relationship with the kingdom.
Pentagon Response: In response, Pentagon speaker John Kirby accused the kingdom of helping Russia’s revenues and hampering the impact of western sanctions on Moscow, reported CNBC.
“In recent weeks, the Saudis – privately and publicly – have told us of their intention to cut oil production, which they knew would increase Russian revenues and weaken the effectiveness of sanctions. That’s the wrong direction,” Kirby reportedly said.
“We provided Saudi Arabia with an analysis to show that there was no market basis to cut production targets and they could easily be influenced by the…
