popular articles

Oil, New Fracture Between Americans and Saudis

By pushing for a reduction in oil production, Saudi Arabia has strained its relationship with the United States.

Please share:

By pushing for a reduction in oil production, Saudi Arabia has put a strain on its already difficult relationship with the United States, but a rupture between these two partners is to be ruled out in the immediate future, analysts believe.

On October 5, Opec+ – the 13 members of the Organization of the Petroleum Exporting Countries (Opec) led by Saudi Arabia and their 10 partners led by Russia – decided to slash its production quotas, in order to support crude prices that were falling.

A rise in prices would also help to fill the coffers of Russia, which relies on its hydrocarbon sales to finance its war in Ukraine, a country it invaded in February.

Against a backdrop of global inflation and soaring energy prices accelerated by the war, and as Americans prepare to vote in the mid-term elections in November, the Opec+ decision has provoked the ire of the White House.

“There will be consequences for what they did with Russia,” U.S. President Joe Biden warned Tuesday, without further elaboration.

Officials in Saudi Arabia, the world’s largest oil exporter, have rejected accusations of collusion with Russia against the West, ruling out any “diktat”.

On Thursday, the Saudi Foreign Ministry assured that the decision of the Opec+ was motivated by “economic considerations” consisting of “protecting the global economy from the volatility of oil markets”.

For the White House, Riyadh “may beat around the bush but the facts are simple”.

“The U.S.-Saudi relationship has gone through periods of intense tension in the past,” notes Anna Jacobs, an analyst with the NGO International Crisis Group. But the current crisis represents “a fracture but not a break,” she emphasizes: “The reality is that Saudi Arabia and the United States need each other.”

– “Kings of traitors” –

In July, Joe Biden visited Saudi Arabia where he greeted Crown Prince Mohammed bin Salmane, provoking outrage from international NGOs that accuse this conservative Gulf monarchy of serious human rights violations.

Before he was elected president, Biden himself promised to make Saudi Arabia a “pariah,” especially in light of the killing of Saudi journalist and critic Jamal Khashoggi in his country’s consulate in Istanbul in 2018.

The objective of Mr. Biden’s visit to Saudi Arabia was to obtain an increase in oil production. In vain.

Members of his Democratic Party then accused the Saudis of being the “kings of traitors” and of having “deceived” the American president.

In addition, some U.S. lawmakers have attempted to revive support for a bill to expose Opec+ to antitrust lawsuits. Others have called on the administration to review the U.S. military presence in Saudi Arabia.

But such measures “would threaten to sever already strained relations, which would increase pressure for higher oil and fuel prices,” warns Torbjorn Soltvedt of risk intelligence firm Verisk Maplecroft.

“The most likely reaction is what we’ve already seen: strong statements from (U.S.) policymakers,” says Ellen Wald, author of Saudi Inc, a history of energy giant Saudi Aramco.

– “Very solid” –

The U.S.-Saudi partnership, dating back to the post-World War II era and often described as an “oil for security” agreement, has been marked by various disagreements, such as on the Israeli-Palestinian conflict or the nuclear agreement with Iran, Saudi Arabia’s great regional rival.

The Saudis were also scalded by the lukewarm U.S. response after attacks on oil facilities in 2019 claimed by the Houthis in neighboring Yemen, rebels backed by Tehran.

In this context, Ali Shihabi, a Saudi analyst close to the government, warns against an “excessive response” by the Americans to the Opec decision.

According to him, it will only accelerate the quest to “diversify Saudi Arabia’s military relations, not only with China and Russia, but also with France, the United Kingdom, India and Pakistan, and even Brazil and South Africa.

But the Saudi officials want to reassure. In an interview with the American channel CNN on Wednesday, Adel al-Jubeir, Minister of State for Foreign Affairs, said that the relationship between the two countries was not “broken”. “Far from it, it is very solid,” he said.

Register free of charge for uninterrupted access.

Publicite

Recently published in

The United States has sanctioned a Chinese refinery processing Iranian crude, increasing pressure on Tehran and raising concerns over global oil market stability.
The United States has cancelled oil operation authorisations in Venezuela for foreign companies, disrupting exports and reinforcing the country's economic isolation following Nicolás Maduro's contested re-election.
The United States has cancelled oil operation authorisations in Venezuela for foreign companies, disrupting exports and reinforcing the country's economic isolation following Nicolás Maduro's contested re-election.
The Algerian energy group Sonelgaz is offering its technical expertise to Burkina Faso to strengthen its electrical infrastructure, illustrating Algeria's strategic intention to consolidate its presence in sub-Saharan Africa’s energy markets.
The Algerian energy group Sonelgaz is offering its technical expertise to Burkina Faso to strengthen its electrical infrastructure, illustrating Algeria's strategic intention to consolidate its presence in sub-Saharan Africa’s energy markets.
Washington again delays the enforcement of sanctions against NIS, the Serbian energy company controlled by Gazprom, extending the status quo until the end of April according to Serbian President Aleksandar Vucic.
Washington again delays the enforcement of sanctions against NIS, the Serbian energy company controlled by Gazprom, extending the status quo until the end of April according to Serbian President Aleksandar Vucic.
The United States has strengthened its support for Guyana amid Venezuela’s claims over the Essequibo, warning Caracas of a military response in case of aggression targeting the territory or American oil interests.
No attacks on energy installations have been reported since a partial agreement announced by the United States, marking a pause in hostilities targeting critical infrastructure.
No attacks on energy installations have been reported since a partial agreement announced by the United States, marking a pause in hostilities targeting critical infrastructure.
During a visit to Guyana, U.S. Secretary of State Marco Rubio announced that any Venezuelan attack on the territory or oil infrastructure of Guyana would trigger a military response, heightening regional tensions.
During a visit to Guyana, U.S. Secretary of State Marco Rubio announced that any Venezuelan attack on the territory or oil infrastructure of Guyana would trigger a military response, heightening regional tensions.
US Secretary of State Marco Rubio launches meetings with Caribbean leaders to discuss energy security, trade pressures and regional instability, including in Haiti and Guyana.
US Secretary of State Marco Rubio launches meetings with Caribbean leaders to discuss energy security, trade pressures and regional instability, including in Haiti and Guyana.
Hungary’s Foreign Minister travelled to Moscow for talks with Russian authorities on energy security, reinforcing a strategic energy partnership already bolstered by record gas and oil deliveries in 2024.
Donald Trump imposes 25% tariffs against importers of Venezuelan oil, particularly targeting China, which has already condemned an infringement on its economic sovereignty, signaling increased tensions in global energy markets.
Donald Trump imposes 25% tariffs against importers of Venezuelan oil, particularly targeting China, which has already condemned an infringement on its economic sovereignty, signaling increased tensions in global energy markets.
The planned visit of senior US officials to Greenland sparks political backlash in Nuuk, as no new government has been formed since the 11 March elections.
The planned visit of senior US officials to Greenland sparks political backlash in Nuuk, as no new government has been formed since the 11 March elections.
Starting 2 April, the United States will apply a 25% customs duty on all goods from countries trading with Venezuela’s oil or gas sector, Donald Trump announced.
Starting 2 April, the United States will apply a 25% customs duty on all goods from countries trading with Venezuela’s oil or gas sector, Donald Trump announced.
Washington imposes sanctions on Luqing Petrochemical, the first independent Chinese refinery targeted for its alleged ties to Iranian oil, as part of its intensified economic pressure campaign against Tehran.
A Panama-flagged vessel suspected of belonging to the Russian shadow fleet was detained by German customs after suffering an engine failure in the Baltic Sea in January.
A Panama-flagged vessel suspected of belonging to the Russian shadow fleet was detained by German customs after suffering an engine failure in the Baltic Sea in January.
Amidst war and geopolitical uncertainty, Ukraine must choose between European influence and the strategic promises of the United States, a choice that could redefine its economic and security future, particularly in terms of natural resources.
Amidst war and geopolitical uncertainty, Ukraine must choose between European influence and the strategic promises of the United States, a choice that could redefine its economic and security future, particularly in terms of natural resources.
As Russian gas deliveries via Nord Stream have ceased, Europe is exploring possible solutions to repurpose or replace this major infrastructure within a complex energy transition and diversification of supply sources.
As Russian gas deliveries via Nord Stream have ceased, Europe is exploring possible solutions to repurpose or replace this major infrastructure within a complex energy transition and diversification of supply sources.
Donald Trump and Vladimir Putin are set to discuss the sharing of rare earth resources in Ukraine on Tuesday, including energy production plants and territories rich in raw materials. These resources are at the heart of the ceasefire negotiations.
UK Energy Minister Ed Miliband met Chinese officials in Beijing to discuss energy cooperation and reducing greenhouse gas emissions, despite disagreements over Hong Kong, forced labour, and the war in Ukraine.
UK Energy Minister Ed Miliband met Chinese officials in Beijing to discuss energy cooperation and reducing greenhouse gas emissions, despite disagreements over Hong Kong, forced labour, and the war in Ukraine.
The European Union has announced a €4.7 billion investment to support South Africa’s energy transition. This initiative is part of a broader strategy of economic cooperation and strategic repositioning of international partners.
The European Union has announced a €4.7 billion investment to support South Africa’s energy transition. This initiative is part of a broader strategy of economic cooperation and strategic repositioning of international partners.
American and Vietnamese companies have signed several commercial agreements totaling $4.15 billion, primarily in the energy and aviation sectors, aiming to reduce the trade imbalance between the two countries.
American and Vietnamese companies have signed several commercial agreements totaling $4.15 billion, primarily in the energy and aviation sectors, aiming to reduce the trade imbalance between the two countries.
A tripartite meeting between China, Russia and Iran will be held in Beijing to address the Iranian nuclear dossier as tensions surrounding Iran's nuclear programme continue to rise.
Guyana’s President, Mohamed Irfaan Ali, reaffirmed his commitment to a diplomatic resolution of the territorial dispute with Venezuela over the Essequibo region as tensions escalate over offshore oil resources.
Guyana’s President, Mohamed Irfaan Ali, reaffirmed his commitment to a diplomatic resolution of the territorial dispute with Venezuela over the Essequibo region as tensions escalate over offshore oil resources.
Donald Trump applies his negotiation methods to the energy sector, leveraging tariffs and targeted statements to influence markets and trading partners. Behind these decisions lies an ambiguous commercial strategy blending bluff and concrete actions.
Donald Trump applies his negotiation methods to the energy sector, leveraging tariffs and targeted statements to influence markets and trading partners. Behind these decisions lies an ambiguous commercial strategy blending bluff and concrete actions.
Newcleo and Danieli have signed a strategic agreement to integrate advanced nuclear reactors into steel production processes, aiming to eliminate fossil fuel use amid rising energy costs in Europe's industrial sectors.
Newcleo and Danieli have signed a strategic agreement to integrate advanced nuclear reactors into steel production processes, aiming to eliminate fossil fuel use amid rising energy costs in Europe's industrial sectors.

Advertising