Saudi King: We aim to support stability of global oil markets

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Saudi Arabia has rebuffed US accusations that it is aligning itself with Russia during the war in Ukraine by cutting oil production to boost crude prices, insisting that it was purely a business decision.

Saudi King Salman bin Abdulaziz Al Saud stressed that his country was "working hard, within its energy strategy, to support the stability and balance of global oil markets".

In the same context, Prince Khaled bin Salman, tweeted: "We are astonished by the accusations that the kingdom is standing with Russia in its war with Ukraine." 

Saudi Arabia has enraged Washington by deciding to cut production by two million barrels per day beginning in November, putting additional pressure on already-high crude prices.

"It is telling that these false accusations did not come from the Ukrainian government," Prince Khaled wrote. "Although the OPEC+ decision, which was taken unanimously, was due to purely economic reasons, some accused the kingdom of standing with Russia”.

A dollar-based relationship 

Since Biden visited Saudi Arabia in July and met with Crown Prince Mohammed bin Salman, despite threatening to make the Kingdom an international "pariah" following the murder of journalist Jamal Khashoggi, the OPEC+ move to cut production was generally viewed as a diplomatic slap in the face. It also comes at a critical time for Biden's Democratic Party, as it prepares for midterm elections in November, with rising consumer costs a prominent Republican talking point.

Saudi Arabia has justified the proposed output cuts by arguing that the "objective of OPEC+ is to keep a sustainable oil market."

Saudi Foreign Minister Prince Faisal bin Farhan told the Saudi-owned Al Arabiya channel on Tuesday that the move "was purely economic and was taken unanimously by the (organization's) member states."

"OPEC+ members acted responsibly and took the appropriate decision," he said.

Kirby added that Biden was "willing to work with Congress to think through what that relationship (with Saudi Arabia) ought to look like going forward," although he clarified that no formal discussions had yet begun. 

Biden threatens KSA with 'consequences'

US President Joe Biden had threatened Saudi Arabia with "consequences" after a coalition led by Riyadh agreed with Russia to cut output.

Last week, the 13-nation OPEC+ and its 10 allies infuriated the White House by resolving to cut output by two million barrels per day beginning in November, fueling fears that oil prices may spike. "I'm not going to get into what I'd consider and what I have in mind. But there will be -- there will be consequences," he told CNN.

Biden would not specify which choices were being evaluated, although the White House had previously stated that Biden was reassessing connections between allies. "I think the president's been very clear that this is a relationship that we need to continue to re-evaluate, that we need to be willing to revisit," National Security Council spokesman John Kirby told CNN. "Certainly in light of the OPEC decision, I think that's where he is."