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US considering 'response options' for OPEC+ oil cut, some against KSA

  • By Al Mayadeen English
  • Source: Agencies
  • 7 Oct 2022 08:52
2 Min Read

Blinken confirms that his country's interests will not be harmed in the process of reviewing ways to tackle the sudden oil cut of 2 million barrels a day.

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  • US Secretary of State Antony Blinken in Lima (Reuters)
    US Secretary of State Antony Blinken in Lima (Reuters)

US Secretary of State Antony Blinken confirmed on Thursday that Washington is contemplating "a number of response options," some of which go "against Saudi Arabia," after the Organization of the Petroleum Exporting Countries (OPEC) announced their decision to curb oil production by two million barrels per day. 

During a press conference in Lima, Peru, after a meeting with Peruvian Foreign Minister Cesar Landa, Blinken stated, "As for the relationship [with Saudi Arabia] going forward, we're reviewing a number of response options. We're consulting with Congress. We will not do anything that would infringe on our interests. That's first and foremost that will guide us."

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On Wednesday, the OPEC states voted on cutting their production of oil and agreed to reduce their oil production by 2 million barrels a day in light of the world's surging energy crisis and the G7 agenda to introduce a price cap on Russian crude oil.

The US is concerned that OPEC's probable decision to reduce oil production will pose serious problems for the country and may even be interpreted as a hostile act, according to a US Treasury report. The Biden administration assembled its top energy, economic, and foreign policy officials and entrusted them with lobbying Middle East allies, such as Saudi Arabia, the United Arab Emirates, and Kuwait to vote against decreasing oil production.

To persuade its OPEC allies, the US proposed to purchase back up to 200 million barrels of oil from its OPEC partners.

The decision to cut down on oil production goes back to 2020 when 23 countries, including OPEC members and 10 non-cartel oil producers, agreed to voluntarily curb output in light of the drop in oil demand due to the global coronavirus crisis at the time. However, this past August, OPEC+ reached pre-pandemic production levels after the agreement was modified to match prevailing market conditions.

  • US
  • OPEC+
  • Antony Blinken
  • Saudi Arabia

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