[Asia Economy New York=Special Correspondent Joselgina] U.S. President Joe Biden stated that he is "looking for alternatives" in response to the decision by the Saudi Arabia-led oil-producing cartel, the Organization of the Petroleum Exporting Countries Plus (OPEC+), to implement a large-scale production cut. Regarding whether he will meet Russian President Vladimir Putin at the upcoming G20 summit in November, he said, "That remains to be seen."
On the 6th (local time), according to the White House and local media, President Biden, while departing the White House to travel to New York, expressed disappointment and concern over the previous day's OPEC+ production cut decision. He said he is seeking alternatives but added, "Nothing has been decided yet" regarding specific alternatives.
The New York Times (NYT) later reported that administration officials aboard Air Force One also did not provide details on specific alternatives. Brian Deese, Chair of the National Economic Council (NEC), said, "There are measures still under evaluation. (President Biden) has told us not to take anything off the table," leaving all possibilities open.
The day before, OPEC+ agreed to cut production by 2 million barrels per day, the largest reduction since March 2020, prompting an immediate U.S. statement of opposition. A surge in oil prices could worsen inflation, which would inevitably have negative repercussions for President Biden ahead of the November midterm elections. Particularly, Saudi Arabia, the dominant member of OPEC, which Biden had visited in July?putting aside human rights concerns for the sake of stabilizing oil prices?has aligned with Russia, damaging Biden's standing. Ultimately, Saudi Arabia completely ignored President Biden's requests.
The U.S. has viewed Russia's oil export revenues as funding for the Ukraine war and has sought to lower oil prices as one way to reduce this funding. With Saudi Arabia cooperating with Russia, there are concerns that U.S.-Saudi relations could deteriorate to their worst state.
When asked if he regrets visiting Saudi Arabia, President Biden defended his decision, saying, "It was not essentially about oil. That trip was about the Middle East and Israel." In response to OPEC+'s production cut, President Biden announced the release of an additional 10 million barrels from the Strategic Petroleum Reserve in November and has instructed the consideration of further short-term measures to increase domestic energy production. Discussions are also underway with Congress on measures to reduce OPEC's influence on energy prices. Local media have mentioned the "No Oil Producing and Exporting Cartels Act" (NOPEC), which aims to protect U.S. companies and consumers from oil price collusion. If enacted, the U.S. government could sue OPEC+ countries.
Regarding whether he will meet Putin at the G20 to discuss the Ukraine issue, President Biden said, "That remains to be seen." Earlier, he had expressed confidence that he would meet Chinese President Xi Jinping if Xi attends. This year's G20 summit will be held in Bali, Indonesia, on November 15-16.
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