Tension Rises Again Between Washington and Riyadh

Tensions have risen again between Saudi Arabia and the United States over oil production.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Tensions have risen again between Saudi Arabia and the United States, which had particularly heated exchanges on Thursday about oil production and, more broadly, about Riyadh’s attitude towards Moscow.

The Saudis have, in a rare statement, hit back at the criticism of the United States, which accuses them of having slashed the production of black gold in order to “align” with the interests of Russian President Vladimir Putin.

“Saudi Arabia has seen the statements … that described the decision as the kingdom’s stance in international conflicts and as politically motivated against the United States,” the Saudi Foreign Ministry said in a statement.

Riyadh expressed its “total rejection” of the U.S. accusations, assuring that the decisions of the crude exporters’ cartel were “based purely on economic considerations.”

Opec+ – the thirteen members of the Organization of the Petroleum Exporting Countries (Opec) led by Saudi Arabia and their ten partners led by Russia – decided last week to slash their production quotas.

– “Total rejection” –

US President Joe Biden has already warned that there will be “consequences” to this decision, which may cause prices to soar. And therefore to fill the coffers of Russia, which needs its oil revenues to finance its war in Ukraine.

Riyadh, for its part, said that the United States “suggested” to him to postpone by one month the decision of Opep+, which could also raise the price of gasoline, and thus displease the American voters.

Clearly, Saudi Arabia is saying that the White House has asked it to wait until the mid-term elections in the United States, scheduled for November 8 and decisive for the continuation of Joe Biden’s mandate, have passed.

Washington’s response to the Saudi communiqué was swift and particularly strong.

Saudi Arabia “may try to manipulate and deflect, but the facts are simple,” the White House charged Thursday.

– “Wrong direction” –

“In recent weeks, the Saudis have made it clear to us, privately and publicly, that they intend to cut oil production, knowing that this would increase Russia’s revenues and lessen the impact of sanctions. This is the wrong direction,” said John Kirby,
spokesperson for the National Security Council.

“They could have easily waited until the next Opec meeting to see how things were going,” he further noted. “Other OPEC countries have told us privately that they also oppose the Saudi decision, but have felt forced to support” Riyadh’s strategy, John Kirby also charged.

Washington “will continue to monitor any signals on (Riyadh’s) position on responding to Russian aggression” against Ukraine, he said.

Joe Biden has already promised to “re-evaluate” the very long strategic relationship between the two countries, which is based on a simple principle: Saudi Arabia supplies the market with oil, and in exchange, the United States ensures its security, notably through massive arms sales.

The American president had visited Saudi Arabia in July to reaffirm this principle, and the White House therefore saw the Opec+ decision as a diplomatic affront.

This visit – and the now-famous fist-for-fist greeting exchanged with Crown Prince Mohammed bin Salmane – is proving decidedly more and more politically costly for the 79-year-old Democrat, who promised during his campaign to reduce Saudi Arabia to “pariah status” in the wake of the murder of journalist Jamal Khashoggi.

Many Democratic lawmakers are now calling for a freeze on massive arms sales to Saudi Arabia. However, the White House has not yet specified what the “consequences” mentioned by Joe Biden would be.

Ambassadors of European Union member states have approved the transmission of a legislative proposal to phase out Russian fossil fuel imports by January 2028 to the Council of Ministers.
The State Duma has approved Russia’s formal withdrawal from a treaty signed with the United States on the elimination of military-grade plutonium, ending over two decades of strategic nuclear cooperation.
Polish Prime Minister Donald Tusk said it was not in Poland’s interest to extradite to Germany a Ukrainian citizen suspected of taking part in the explosions that damaged the Nord Stream gas pipelines in 2022.
Al-Harfi and SCLCO signed agreements with Syrian authorities to develop solar and wind capacity, amid an ongoing energy rapprochement between Riyadh and Damascus.
Faced with risks to Middle Eastern supply chains, Thai and Japanese refiners are turning to US crude, backed by tariff incentives and strategies aligned with ongoing bilateral trade discussions.
France intercepted a tanker linked to Russian exports, prompting Emmanuel Macron to call for a coordinated European response to hinder vessels bypassing oil sanctions.
The activation of the snapback mechanism reinstates all UN sanctions on Iran, directly affecting the defence, financial and maritime trade sectors.
Commissioner Dan Jørgensen visits Greenland to expand energy ties with the European Union, amid plans to double EU funding for the 2028–2034 period.
European and Iranian foreign ministers meet in New York to try to prevent the reinstatement of UN sanctions linked to Tehran’s nuclear programme.
Canadian Prime Minister Mark Carney announces a bilateral agreement with Mexico including targeted investments in energy corridors, logistics infrastructure and cross-border security.
The US president has called for an immediate end to Russian oil imports by NATO countries, denouncing a strategic contradiction as sanctions against Moscow are being considered.
Tehran withdrew a resolution denouncing attacks on its nuclear facilities, citing US pressure on IAEA members who feared suspension of Washington’s voluntary contributions.
Poland’s energy minister calls on European Union member states to collectively commit to halting Russian oil purchases within two years, citing increasing geopolitical risks.
Athens and Tripoli engage in a negotiation process to define their exclusive economic zones in the Mediterranean, amid geopolitical tensions and underwater energy stakes.
European powers demand concrete steps from Tehran on nuclear issue or United Nations sanctions will be reinstated, as IAEA inspections remain blocked and tensions with Washington persist.
Brussels confirms its target to end all Russian energy imports by 2028, despite growing diplomatic pressure from Washington amid the ongoing conflict in Ukraine.
Donald Trump threatens to escalate US sanctions against Russia, but only if NATO member states stop all Russian oil imports, which remain active via certain pipelines.
The two countries agreed to develop infrastructure dedicated to liquefied natural gas to strengthen Europe's energy security and boost transatlantic trade.
Ayatollah Ali Khamenei calls for modernising the oil industry and expanding export markets as Tehran faces the possible reactivation of 2015 nuclear deal sanctions.
The Ukrainian president demanded that Slovakia end its imports of Russian crude, offering an alternative supply solution amid ongoing war and growing diplomatic tensions over the Druzhba pipeline.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.