WSJ: Saudi Arabia Rejected US Calls To Delay Oil Production Cut

Oct-11 2022 16:37By: Adam Burrowes
Political Market NewsOil Bullets

The Wall Street Journal has reported that Saudi Arabia rejected petitioning from the US to delay an October 5 oil production cut by a month.

  • WSJ: "Days before a major oil-production cut by OPEC... US officials called their counterparts in Saudi Arabia and other big Gulf producers with an urgent appeal—delay the decision for another month..."
  • According to WSJ, Saudi officials dismissed the request as designed to avoid political fallout from higher energy prices with the US midterm elections looming.
  • The revelation that the Biden administration tried and failed to influence OPEC policy may further damage US President Joe Biden's reputation as an effective negotiator with international energy producers.
  • Biden made a highly publicised trip to Saudi Arabia in July to personally ask de facto Saudi ruler, Crown Prince Mohammad bin Salman to increase production.
  • The failure of that trip prompted backlash from Democrats and Republicans alike, and the latest OPEC production cut has intensified calls from lawmakers to take action against Saudi Arabia.
  • The White House confirmed today that the Biden is willing to work with Congress and re-evaluate the US relationship with Saudi Arabia. This may include a freeze of arms sales and a withdrawal of US troops stationed in the Kingdom.