Sunday, January 29, 2023

Saudis: US asked to delay production cut for 1 month

DUBAI, United Arab Emirates ( Associated Press) — Saudi Arabia said Thursday that the United States had urged OPEC and its allies, including Russia, to postpone oil production cuts by a month. The delay will help reduce the risk of a hike in gasoline prices a month before the US election.

A Saudi foreign ministry statement made no mention of the November 8 election, in which President Joe Biden will seek to retain his narrow Democratic majority in Congress. But he says the US has “suggested” postponing the cuts for a month. OPEC announced the production cut at its meeting in Vienna on 5 October.

Delaying the cuts would mean implementing them days before the election, when they would hardly affect prices at the pump.

Rising oil prices—and by extension, gasoline prices—have been a key factor driving rising inflation in the United States and around the world, exacerbating the global economic crisis as Russia’s war in Ukraine upends the economy. global food supply. For Biden, the increase in gasoline will sway voters. Several legislators have indicated that the long-standing security-based relationship with Saudi Arabia should be called into question.

The White House has rejected attempts to link OPEC’s request to the election, but Riyadh’s long and unusual statement shows how strained bilateral relations have become. The White House said on Thursday that some unnamed members of OPEC+ were reluctant to implement the cuts, calling it a “short-sighted decision”.

National Security Council spokeswoman Adrienne Watson said, “To link this to the US election is plainly wrong.” “The reason for this has always been the effect on the global economy and families here and around the world, especially as (Russian President Vladimir) Putin wages his war against Ukraine.”

Nation World News Desk
Nation World News Desk
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