The reduction in oil production further strains relations between Washington and Riyadh. Members of the energy cartel close ranks with their Saudi ally

US and Saudi Arabia on the warpath over OPEC+

photo_camera PHOTO/ARCHIVO - US President Joe Biden and Saudi Crown Prince Mohammed bin Salman clash fists in Jeddah

The historic alliance between the US and Saudi Arabia was not at its best when in early October OPEC+, led by its largest oil exporter, Riyadh, unanimously decided to cut oil production by 2 million barrels per day, equivalent to 2% of global supply. It was the largest reduction in two years, although in practice the actual cut would be limited to 1 million barrels. The measure benefited its members, especially Russia, but left the markets vulnerable to further price increases. 

The decision ultimately unravelled bilateral relations between Washington and Riyadh. The Biden administration had been pressuring the Saudi authorities to reverse the decision since the first information was leaked, but as soon as they realised that the decision to partially turn off the tap had been taken, US diplomacy moved to postpone the announcement until after the US mid-term elections in November.

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Saudi Arabia ignored all their demands, motivated by domestic political deadlines. White House occupant Joe Biden remains under pressure from the country's delicate economic situation. Runaway inflation and rising fuel prices could take their toll in the midterm elections, where the Democrats are gambling on maintaining their majorities in the Senate and Congress. Losing the Houses would sour Biden's first term in office and hamper the president's ability to push through his proposals. 

The international context is also key, as the drastic reduction only serves the Kremlin's interests. Under these conditions, Russia could collect more revenue from its energy resources, which would mitigate the impact of Western sanctions on its economy and also grease its war machine in Ukraine. Saudi Arabia and the other OPEC+ members are aware of this, but prioritised their economic interests. This is why Washington has accused Riyadh of 'aligning itself' with Moscow's interests.

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The US political scene has come to a boil. Many voices are questioning, even from within the institutions, the US's ties with Saudi Arabia, which were cemented in the 1930s when the House of Saud granted Standard Oil a licence to explore the newly delimited Saudi territory for hydrocarbons. They found the world's largest oil reserves. Thus was forged a relationship that is now at its lowest ebb. 

The US diplomatic, political and media campaign to discredit Saudi Arabia's image has intensified in the wake of the OPEC+ decision. Accused of favouring the Kremlin, Riyadh went off on a tangent by approving a $400 million humanitarian aid package for Ukraine, which Zelenski welcomed. Earlier, the Wahhabi kingdom had brokered a prisoner exchange. Russia released 215 Ukrainians in exchange for Ukraine's release of 54 Russians.

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Despite the discredit, unity in the OPEC+ bloc has not suffered. Members of the energy cartel have closed ranks with Riyadh. In fact, several Saudi allies have ratified the decision to cut production. The main defender has been the United Arab Emirates, whose Energy Minister Suhail Al Mazrouei clarified that the measure was "purely technical, without any political intention". The aim, they argue, is to anticipate Western economic weakness and reduced demand for oil. It is "based on economic indicators". 

Saudi monarch Salman bin Abdulaziz told a ministerial meeting that the desert kingdom works "to support the stability and balance of world oil markets" and is interested in "developing and investing all the energy resources it enjoys". But explanations have not been enough for the White House. Especially because of the indirect support for Russia. Saudi Arabia and the Emirates have condemned Russian aggression, but refused to join Western sanctions against Moscow.

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Emirati President Mohammed bin Zayed met with Putin in St Petersburg last week. Abu Dhabi plans to "reduce tensions and find diplomatic solutions to the crisis", and Riyadh supports the same approach. This has further strained diplomatic ties following a history of accusations of human rights violations in the Wahhabi kingdom and Saudi concerns about Washington's commitment to national security. In addition to the US interest in reissuing the Iran nuclear deal. 

"We are reassessing our relationship with Saudi Arabia in light of these actions, and will continue to look for signals about its position on countering Russian aggression," confirmed White House National Security Council spokesman John Kirby. "The Saudi Foreign Ministry may try to spin or deflect attention, but the facts are simple. The world is rallying behind Ukraine to fight Russian aggression."

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The kingdom's crown prince and de facto ruler, Mohammed bin Salman, recently appointed prime minister, will attend the G20 summit in Bali on 15-16 November, which will also be attended by US President Joe Biden. They are not scheduled to meet. Neither side envisages a face-to-face meeting, let alone in this situation. Nothing like the fistfight in Jeddah last July.

Coordinator America: José Antonio Sierra

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