OPEC+ Production Cuts and US Biden's "Reevaluation of Relations with Saudi Arabia"... Will It Remain Just a Warning?

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[Asia Economy New York=Special Correspondent Joselgina] U.S. President Joe Biden is reportedly set to reconsider the relationship with Saudi Arabia, which played a leading role in the recent production cut decision by the Organization of the Petroleum Exporting Countries Plus (OPEC+), a group of major oil-producing countries. The U.S. views this production cut decision, centered on Saudi Arabia, as so-called 'taking Russia's side.'

John Kirby, White House National Security Council (NSC) Strategic Communications Coordinator, said on CNN on the 11th (local time), "I believe the President has made it very clear that this relationship (with Saudi Arabia) is one that needs to be continuously reassessed," adding, "The President is at that point because of OPEC's recent decision."

Accordingly, Kirby confirmed that President Biden is exploring ways to cooperate with Congress in resetting the relationship with Saudi Arabia going forward. He elaborated, "President Biden will engage in dialogue soon," and "This is not a matter to be waited on."

This statement drew attention as it came just one day after Robert Menendez, a Democratic member and chairman of the U.S. Senate Foreign Relations Committee, urged a complete halt to all cooperation with Saudi Arabia. It is seen as a sign that retaliatory measures at the U.S. administration level could be implemented.

The day before, Menendez claimed that Saudi Arabia is supporting Russia's war in Ukraine through oil production cuts, calling it "a terrible decision driven by economic selfishness." Democratic Senator Richard Durbin also stated on the same day, "Let's be honest about this issue. The opponents of the U.S. are Russian President Vladimir Putin and Saudi Arabia," asserting that Saudi Arabia clearly wants Russia to win.

Earlier, the Biden administration publicly expressed regret through a statement when OPEC+ decided to cut production by 2 million barrels per day starting next month. President Biden expressed dissatisfaction to reporters, saying, "It's disappointing and problematic." U.S. Treasury Secretary Janet Yellen also criticized in an interview, calling it "not helpful (to the global economic situation) and unwise."

The U.S. particularly sees Saudi Arabia's decision as linked to its national security interests. On the same day, Kirby also confirmed in a virtual briefing, "Given OPEC's decision, the President believes we need to reconsider our bilateral relationship with Saudi Arabia," adding, "(President Biden) believes we need to examine where that relationship should stand and whether it contributes to national security interests."

The New York Times (NYT) reported, "President Biden's willingness to consider retaliatory measures marks a significant shift," noting, "Despite efforts to improve relations with Saudi Arabia over the past few months, last week's production cut decision led by Saudi Arabia's OPEC+ reflects deep anger."

However, the direction of future discussions or specific moves have not been confirmed. It is also pointed out that it is difficult to start discussions with lawmakers immediately ahead of next month's midterm elections. The NYT also evaluated that it is currently unclear how far President Biden is willing to go, whether his public remarks are merely warnings to Saudi Arabia, or efforts to appease domestic public opinion demanding a tough response against Saudi Arabia. No separate team has been formed for related discussions, nor has a deadline been set.

Warnings expressing concern over bold measures are pouring in, especially from diplomatic veterans. Martin Indyk of the think tank The Council on Foreign Relations argued, "The U.S. should seek a new strategic agreement with Saudi Arabia rather than a breakdown." Aaron David Miller, who has dealt with Middle East issues at the Carnegie Endowment for International Peace, also pointed out that President Biden should consider the potential problems that could arise from severing ties with Saudi Arabia, a key U.S. ally, while fighting terrorism and responding to Iran in the Middle East region.

The Wall Street Journal (WSJ) reported on the same day, citing sources, that Saudi Arabia ignored U.S. requests to delay the oil production cut decision and led a larger-than-expected cut. A few days before the regular meeting, U.S. government officials made urgent calls to Saudi Arabia and other major oil producers asking to postpone the production cut decision to the next meeting, but Saudi Arabia and others responded with a firm "No."

To sway Saudi Arabia, which was concerned about falling oil prices, the U.S. even promised large-scale oil purchases to fill its strategic petroleum reserve if Brent crude prices fell to $75 per barrel, but WSJ reported that Saudi Arabia also rejected this proposal.

U.S. government officials said the Biden administration is also considering canceling its attendance at the Saudi Future Investment Initiative (FII) forum scheduled for this month.

This content was produced with the assistance of AI translation services.