Riyadh: Saudi Arabia has informed the United States that the decision to delay OPEC+ production cuts is not good for the world, the foreign ministry said in a statement.
“The Kingdom has clarified through ongoing consultations with the U.S. government that all economic analysis indicates that delaying the OPEC+ decision by one month as recommended would have negative economic consequences,” the statement said.
The kingdom also rejected statements criticizing OPEC+ after last week’s decision to cut oil supply.
OPEC members and their allies agreed on October 5 to cut production by 2 million barrels per day.
President Joe Biden, who is trying to prevent Russia from profiting from energy sales to limit President Vladimir Putin’s war in Ukraine, called the decision “short-sighted” after the coalition announced production cuts in Vienna.
Biden promised this week that Saudi Arabia’s relationship with the United States “will have an impact” as a result of the OPEC+ move, but did not clarify what his administration intends to do.
Statement by the Saudi Ministry of Foreign Affairs Saying that criticism of Saudi Arabia taking sides in an international conflict or supporting production cuts for political reasons is not based on facts and excludes the OPEC+ decision from its economic context.
The agreement among the OPEC+ countries is consistent and aimed at balancing supply and demand to help contain market volatility, the ministry statement said, adding that Saudi Arabia rejects any attempt to divert its goal of protecting the global economy from oil market volatility.
“Our priority right now is to maintain market stability in terms of demand and investment,” Saudi Energy Minister Prince Abdulaziz bin Salman told Bloomberg after announcing the production cuts. In directly prioritizing profits, he said “If we’re doing it intentionally to drive up prices and that’s not in our focus, our focus is on making sure we maintain the market, then that slogan might be acceptable.”
The Saudi Foreign Ministry statement quoted an unnamed official as saying: “Solving economic challenges requires the establishment of a constructive dialogue that is depoliticized and considered wisely and rationally about what is in the interests of all countries. The kingdom affirms that it considers relations with the United States to be It is a strategic relationship that serves the common interests of both countries.”
Focusing on the impact of rising oil prices ahead of the November election, U.S. Democrats have slammed the kingdom, with some even calling for an end to defense cooperation between longtime partners.
On Wednesday, the average U.S. gasoline price was $3.92 a gallon.
Saudi Foreign Minister Adel al-Jubeir told Fox News on Friday: “The idea that Saudi Arabia is doing this to hurt the U.S. or get involved in politics in any way is absolutely incorrect. IMHO, the reason U.S. oil prices are high is refining. The shortage has been there for over 20 years and no refinery has been built in decades.”
Former US Secretary of State Mike Pompeo blamed Biden for the current energy crisis.
“This is a failure of U.S. policy. Joe Biden is directly responsible for where the world is in energy.”
He also accused the progressive left of spending 25 years thinking they “will run the world on sunshine and windmills”.
In addition to not building new refineries, Pompeo said the current administration’s strategy of making America energy independent is wrong.
“We closed a pipeline, we had a hard time getting a license, and our ESG rules now deny that American consumers can’t move American energy away from the continental United States.”
“We have the ability to help ourselves in America,” Pompeo told Fox News on Sunday.
“It would be a huge mistake to point the finger at someone else, whether it’s OPEC or Saudi Arabia, when the United States has the ability to achieve energy independence for its own country and, frankly, for the world.”