In an exclusive CNN interview, US President Joe Biden said there would be “consequences” for Saudi Arabia after it partnered with Moscow to announce a cut in oil production, a move that could cause gas prices to increase as November’s midterm elections approach.
Biden spurned negative economic forecasting, saying that economists have been predicting a slowdown for months, yet a recession has not occurred.
“I don’t think there will be a recession. If it is, it will be a very slight recession,” Biden said told CNN.
Biden said he believed it was time to “rethink” the US relationship with Saudi Arabia after the kingdom partnered with Russia to cut oil production, a rebuke after intensive White House efforts to prevent such a decision.
“I am in the process, when the House and Senate gets back, they’re going to have to – there’s going to be some consequences for what they’ve done with Russia,” Biden said.
MBS ignores US demands, Emirati advice
The Wall Street Journal reported that days before a major oil-production cut by OPEC and its Russia-led allies, US officials warned Saudi leaders that a cut would be viewed as a clear choice by Riyadh to side with Russia in the Ukraine war and that the move would weaken already-waning support in Washington for the kingdom.
In one of its first responses, US officials said, the Biden administration is weighing whether to withdraw from participation in Saudi Arabia’s flagship Future Investment Initiative investment forum later this month. According to the paper, the US has pulled out of a working group meeting on regional defenses next week at the Gulf Cooperation Council, based in Saudi Arabia.
The paper further pointed out that the United Arab Emirates opposed the production cut and advocated privately for a one-month delay, in line with US requests.
MBS’ Neom Project Threatened
For its part, the New York Times said that Biden has pledged consequences for Saudi Arabia’s oil cut and Democratic allies in Congress have urged retaliatory moves such as halting arms sales.
The paper further added that UAE’s ruler Mohamed bin Zayed sent his national security advisor to Riyadh in a failed attempt to convince MBS to retreat his decision as it would threaten his NEOM project budget.
Increasing Congress Hostility
Director of the Middle East program at the Center for Strategic and International Studies (CSIS) Jon Alterman said that Riyadh could expect increasing hostility from Congress.
Alterman added: “That could get messy for the Saudis very quickly as they don’t have many friends in Congress.”
Social media outrage
MBS’ irresponsible decision has triggered a new wave of critical comments. Here are some of them:
Instead last week, Saudi Arabia and Opec+ group – including Russia – agreed to reduce the supply that will push prices up. Beneficiary will be Putin ofc. US and UK are already in a recession. This Oil Spike could possibly create a disaster
https://twitter.com/UmarBut07866489/status/1581238757663002631
Saudi Arabia had it coming for a very long time: Strategic ties on the line as Biden vows ‘consequences’ for Saudi over OPEC oil cut
https://twitter.com/DrVKhumalo1/status/1581234191940784128
