Saudi Arabian Energy Minister Prince Abdulaziz bin Salman asserted Monday his country and other OPEC+ member nations “remain ready to intervene” and again cut oil production if they deem it necessary – a rebuke of a report in the Wall Street Journal claiming the oil cartel was preparing to increase supply.
The Saudi government has faced heavy criticism from the administration of leftist President Joe Biden for supporting OPEC+ oil cuts, particularly the dramatic, 2-million-barrel-a-day cut announced in early October, raising gasoline prices in America immediately before the scheduled midterm elections. Biden officials, prominently Secretary of State Antony Blinken, accused the Saudis of helping Russia fund its eight-year-old invasion of Ukraine by voting to cut production, noting that Russia is a member of OPEC+.
That line of attack was significantly weakened by Ukrainian President Volodymyr Zelensky, who issued a statement of support and gratitude to the Saudi government for its role in a prisoner swap deal shortly after the oil production cut.
Blinken responded to Saudi Arabia’s overt support for Ukraine by claiming that it did not compensate for increasing oil prices.
The oil cut was particularly shocking to the Biden administration as Biden himself had traveled to Jeddah, Saudi Arabia, and met with Crown Prince Mohammed bin Salman, presumably to request that the Saudis increase oil production to drive prices down.
Biden himself denied that asking for oil was the goal of his visit in July, but never offered any other reason for him to visit a country he promised to turn into a “pariah” while campaigning for the presidency.
The Wall Street Journal cited anonymous OPEC “delegates” in a report published late Monday to claim that the cartel may be planning production increases.
“A production increase of up to 500,000 barrels a day is now under discussion for OPEC+’s Dec. 4 meeting, delegates said,” the newspaper claimed. “The move would come a day before the European Union is set to impose an embargo on Russian oil and the Group of Seven wealthy nations’ plans to launch a price cap on Russian crude sales, potentially taking Moscow’s petroleum supplies off the market.”
The Wall Street Journal tied potential production increases to the Biden administration moving last week to immunize Crown Prince Mohammed bin Salman in a lawsuit over the brutal murder of Washington Post columnist Jamal Khashoggi, who Saudi officials killed at a consulate in Istanbul, Turkey. The Department of Justice argued that, as the crown prince was also prime minister of Saudi Arabia – a title he received three days before the filing deadline on the lawsuit – he was eligible for legal immunity.
The move to aid the crown prince following years of tough talk on the Khashoggi case triggered widespread condemnation of Biden’s “incoherent” Saudi Arabia policy.
According to the news agency Reuters, the price of oil dropped over five percent shortly after the Wall Street Journal published its report.
Energy Minister Prince Abdulaziz bin Salman rapidly denied the Wall Street Journal report on Monday and went so far as to argue that, not only would OPEC+ not raise production, it may cut it again at its next meeting in December.
“It is well known, and no secret, that OPEC+ does not discuss any decisions ahead of its meetings,” the energy minister said in a statement, according to the Saudi state news agency SPA. “The current cut of 2 million barrels per day by OPEC+ continues until the end of 2023 and if there is a need to take further measures by reducing production to balance supply and demand, we always remain ready to intervene.”
The threat of another potential oil cut follows months of tensions between Washington and Riyadh, exacerbated by reports that the Biden administration had attempted to convince the Saudis to increase oil production to impact the results of the November midterms. The New York Times claimed in late October that Biden officials suggested OPEC+ should first enact an “increase of 400,000 barrels per day” in September and further increase production by 200,000 barrels a day per month through the end of the year. The Saudis clearly did not accept the deal, if the left-wing newspaper’s report was accurate that a deal was on the table.
The Times report cited anonymous officials who claimed that the White House felt “duped” by promises from Mohammed bin Salman himself during Biden’s visit to Saudi Arabia that he would allegedly increase oil production.
Biden’s poor personal relationship with the crown prince has exacerbated tension between the two countries greatly. The Wall Street Journal, against citing anonymous sources, has reported repeatedly of the poor results of Biden’s in-person meeting with Mohammed bin Salman, suggesting that the Saudis decided to cut production in response to that meeting and that the 37-year-old crown prince routinely mocked Biden as old and confused.
“Saudi Crown Prince Mohammed bin Salman, the kingdom’s 37-year-old day-to-day ruler, mocks President Biden in private, making fun of the [then-]79-year-old’s gaffes and questioning his mental acuity,” the Wall Street Journal claimed, “according to people inside the Saudi government.”
“He has told advisers he hasn’t been impressed with Mr. Biden since his days as vice president, and much preferred former President Donald Trump, the people said,” the newspaper added.
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