CAIRO – Saudi Arabia rejected as “not based on facts” criticism of an OPEC+ decision last week to cut its oil production target despite US objections, and said that Washington’s request to delay the cut by a month would have had negative economic consequences.
The White House pushed back against that, saying it presented the Saudis with an analysis that showed the cuts could hurt the world economy, and alleging the Saudis pressured other OPEC members on a vote. Officials from both countries are expected to discuss the situation shortly.
The back-and-forth has added to what has already been a frosty period of relations for the two countries, who have had an energy-for-security alliance for decades.
OPEC+, the producer group comprising the Organization of the Petroleum Exporting Countries (OPEC) plus allies including Russia, last week announced a cut of 2 million barrels per day to its production target after weeks of lobbying by US officials against such a move.
The move came even though fuel markets remain tight, with inventories in major economies at lower levels than when OPEC has cut output in the past.
The OPEC+ cut has raised concerns in Washington about the possibility of higher gasoline prices ahead of the November US midterm elections, with the Democrats trying to retain their control of the House of Representatives and Senate.
US President Joe Biden pledged earlier this week that “there will be consequences” for US relations with Saudi Arabia after OPEC+’s move.
Asked on Thursday about the situation during a Los Angeles trip, Biden told reporters “We’re about to talk to them.”
The OPEC+ decision was adopted through consensus, took into account the balance of supply and demand and was aimed at curbing market volatility, the Saudi foreign ministry said in a statement on Thursday.
The Saudi foreign ministry statement referred to consultations with the United States prior to the Oct. 5 OPEC+ meeting in which it was asked to delay the cuts by a month.
