PanamaTimes

Wednesday, May 29, 2024

‘We don’t use oil as a weapon’: Saudi Arabia hits back at US in OPEC+ cuts row

‘We don’t use oil as a weapon’: Saudi Arabia hits back at US in OPEC+ cuts row

Saudi Arabia has told the US that postponing the decision by the Organization of the Petroleum Exporting Countries and its allies to cut production would have been negative for the world, the foreign ministry said in a statement.

The group, known as OPEC+, agreed to cut supply by 2 million barrels a day on Oct. 5.

US President Joe Biden, who is attempting to stop Russia profiting from energy sales to limit Russia’s war in Ukraine, called the decision “shortsighted”, and promised “there will be consequences” for Saudi-US relations, without clarifying what his administration intends to do.

In response, the Saudi Foreign Ministry said claims the Kingdom was taking sides in international conflicts or had supported the cuts for political reasons against the US were not based on facts and took the OPEC+ decision out of its economic context.


“The Kingdom clarified through its continuous consultation with the US Administration that all economic analyses indicate that postponing the OPEC+ decision for a month, according to what has been suggested, would have had negative economic consequences,” the statement said.

The Kingdom also rejected statements criticizing it after last week’s OPEC+ decision to cut oil supply.

The ministry statement said the agreement between OPEC+ nations was unanimous and sought to balance supply and demand to help curb market volatility, adding that Saudi Arabia rejected any attempt to divert it from the goal of protecting the global economy from oil market fluctuations.

Saudi Arabia's Minister of State for Foreign Affairs Adel al-Jubeir struck a bullish tone in an interview on CNN, saying: “Saudi Arabia does not politicise oil. We don’t see oil as a weapon. We see oil as our commodity. Our objective is to bring stability to the oil market. And our record is very clear on this not over the past few weeks but over the past decades.”


Regarding the impact the row is having on relations between Saudi Arabia and the US, he added that the two nations had “permanent” interests, such as fighting extremism and terrorism.

“I don't believe this relationship is broken, very far from it, this relationship is very robust,” he said, adding: “We have almost 80,000 Americans living and working in Saudi Arabia, we have a very strong trade and investment relationship.”

Saudi Energy Minister Prince Abdulaziz bin Salman also took to the airwaves, and told Bloomberg: “Our current priority is stability in the market in terms of demand and investment.”

On prioritizing profit directly he said: “That mantra maybe could be acceptable if it is meant to be that we are deliberately doing this to jack up prices and that is not on our radar, our radar is to make sure we sustain markets.”

The Saudi foreign ministry statement, citing an unnamed official, said: “Resolving economic challenges requires the establishment of a non-politicized constructive dialogue, and to wisely and rationally consider what serves the interests of all countries. The Kingdom affirms that it views its relationship with the US as a strategic one that serves the common interests of both countries.”

Abdulaziz Al-Moqbel, a consultant and energy markets specialist, told Arab News the US position is "directly influenced by the status of the refining sector in the US", which is characterised by aging refineries and a lack of diverse sourcing of heavy and medium crude benchmarks.

He added: “The global economy has been battered by a series of macro events such as the trade war between the largest two economies followed by a pandemic and last but not least the conflict between Russia and the Ukraine.

“Any disruption in the oil markets could cause yet another economic distress. The OPEC+ decision aims to be proactive and preemptive to avoid any consequences of yet another global economy crisis.”

Saudi Arabia was supported by the Secretary General of the Gulf Cooperation Council, Nayef Falah Al Hajraf.

A missive issued on his website said Al Hajraf “expressed full solidarity” with the Kingdom, adding that statements criticizing Saudi Arabia “lack facts”.

He went to praise “the important and pivotal role played by the Kingdom at the regional and international levels in the field of mutual respect between countries”, as well as “the Kingdom's commitment not to compromise the sovereignty of states, protecting the global economy from fluctuations in energy prices and ensuring its supplies according to a balanced policy that takes into account the interests of the producing and consuming countries.”

US Democrats, with an eye on the impact of rising gas prices ahead of November elections, have assailed Saudi Arabia, with some even calling for the end of defense cooperation between the longstanding partners.

The average US gas price stood at $3.92 per gallon on Wednesday.

Former US Secretary of State Mike Pompeo blamed Biden for the current energy crisis.

“This is a failure of American policy. Joe Biden is directly responsible for the place that the world finds itself on energy.”

He also accused the progressive left of spending 25 years of thinking they are “going to run the world on sunshine and windmills.”

Aside from not building new refineries, Pompeo said the current administration has the wrong strategy for making the US energy independent.

“We shut down a pipeline, we’ve made it hard to permit, we’ve got ESG rules that now deny the capacity to get American energy out of American ground for American consumers.”

“We have the capacity for self-help here in the US,” Pompeo told Fox News Sunday.

“To point the finger at someone else, at OPEC or at the Saudis, is an enormous mistake when America has the capacity to produce energy independence for its own country and, frankly, provide energy for the world as well.”

Newsletter

Related Articles

PanamaTimes
0:00
0:00
Close
El Salvador's Bitcoin Holdings Reach $350 Million
Teens Forming Friendships with AI Chatbots
WhatsApp Rolls Out Major Redesign
Neuralink's First Brain Implant Experiences Issue
Apple Unveils New iPad Pro with M4 Chip, Misleading AI Claims
OpenAI to Announce Google Search Competitor
Apple Apologizes for Controversial iPad Pro Ad Featuring Instrument Destruction
German politician of the AFD party, Marie-Thérèse Kaiser was just convicted & fined $6,000+
Changpeng Zhao Sentenced to Four Months in Jail
Biden Administration to Relax Marijuana Regulations
101-Year-Old Woman Mistaken for a Baby by American Airlines: Comical Mix-Up during Flight Check-in
King Charles and Camilla enjoying the Inuit voice singing performance in Canada.
New Study: Vaping May Lower Fertility in Women Trying to Get Pregnant
U.S. DOJ Seeks Three-Year Sentence for Binance Founder Changpeng Zhao
Headlines - Thursday, 23 April 2024
Illinois Woman Wins $45M Lawsuit Against Johnson & Johnson and Kenvue for Mesothelioma Linked to Baby Powder
Panama's lates news for Friday, April 19
Creative menu of a Pizza restaurant..
You can be a very successful player, but a player with character is another level!
Experience the Future of Dining: My Visit to an AI-Powered Burger Joint
Stabbing rampage terror attack in Sydney, at least four people killed, early reports that a baby was among those stabbed.
Iran fired more than 300 drones and missiles at Israel overnight. Israel Reports Light Damage After Iran Launches Large Strike.
I will never get enough of his videos and the pure joy and beauty of these women!!
Scientists at the University of Maryland have developed an "invisibility cloak", for AI using adversarial patterns on a sweater, making the wearer nearly undetectable to standard object detection methods.
Lamborghini Bids Farewell to Its Best-Selling Sports Car: The Huracán
Sam Bankman-Fried Appeals 25-Year Prison Sentence for $8bn FTX Fraud
OJ Simpson, ex-NFL star who was acquitted of murder, dies aged 76
British Backpacker Imprisoned in Notorious Bolivian Prison: Family Raises Funds for Legal Fight and Essentials
Argentina: Venezuela Cuts Power to Embassy after Opposition Meeting
El Salvador Offers 5,000 Passports to Skilled Foreign Workers: Tax-Free Relocation and Citizenship
Panama Papers Trial Begins: Founders of Mossack Fonseca Face Money-Laundering Charges
75 Becomes the New 65: Retiring in Your 60s Unrealistic as Life Expectancy Increases and Costs Rise
Total Solar Eclipse of 2021: 32 Million Witness the Mystical, $1.5bn Spectacle Sweep Across North America
New shopping experience…
New world, new reality, let’s get used to it
UK Company Passes Milestone in Developing Space-Based Solar Power, Aiming to Power a Million Homes and Provide Constant Energy
Mexico Breaks Diplomatic Ties with Ecuador after Police Storm Embassy, Arrest Former Vice President
Monty Python were so ahead of their time
If there's a will, there's a way!
Rules about how to dress are important, but not so much if you have a lot of money.
Body Armor Firm Showcases Stab-Proof Vest in Demo on CEO
Mexico Cuts Diplomatic Ties with Ecuador After Embassy Stormed in Quito
Here is a tattoo idea, for engineers
Zoraya Ter Beek, a 28-year-old woman from the Netherlands, will undergo euthanasia in May due to severe mental health challenges
Here's a video featuring Fidel Castro, where he discusses his stance against war and his commitment to preserving life, positions that have put him at odds with the USA:
Woman reaches behind and steals gun from a security guard and shoots three people while getting detained in Chile
Take a walk around the safe and thriving downtown San Salvador.
Joe Biden criticised by Trump campaign for declaring Transgender Day of Visibility on Easter Sunday
Macron says France will help Brazil develop nuclear-powered submarines
A video demonstrating women's self defense class in 1930
×