Saudi Arabia: "US Requests OPEC+ to Postpone Production Cut Decision by One Month"

"Purely Economic Reasons for Production Cuts" Emphasized
US "Cannot Find Situation Requiring Production Cuts" Pushback

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] Saudi Arabia revealed that it was asked by the U.S. government to postpone the OPEC+ oil production cut decision by one month but refused the request. It also clarified that the production cut decision was based on economic necessity and was not a measure to aid Russia, as some in the U.S. have suggested.

According to the Associated Press on the 13th (local time), the Saudi Ministry of Foreign Affairs stated in a press release, "The U.S. government requested a one-month delay of OPEC+’s production cut decision. However, after continuous consultations with the U.S. administration and reviewing all economic analyses, we concluded that postponing the measure could lead to negative economic outcomes." It added, "This production cut decision was not based on a unilateral decision by a single country but was unanimously agreed upon by all member countries and is purely based on economic considerations."

The reason the Saudi Ministry of Foreign Affairs directly disclosed the U.S. government’s request to delay the production cut is interpreted as an effort to emphasize claims that the Biden administration requested the delay for political reasons ahead of the November midterm elections. However, the Saudi Ministry of Foreign Affairs did not explicitly mention the U.S. midterm elections in its statement.

The White House denied claims that the request to delay the oil production cut was related to the U.S. elections and strongly opposed the notion, stating that the production cut actually demonstrates Saudi Arabia’s support for Russia.

John Kirby, Coordinator for Strategic Communications at the White House National Security Council (NSC), criticized Saudi Arabia, saying, "It is difficult to find market-based reasons to implement the production cut at this time," and added, "Other OPEC member countries do not agree with Saudi Arabia’s decision but have privately told us they felt pressured to support Saudi Arabia’s direction."

Not only the Biden administration but also U.S. political circles have been heavily criticizing Saudi Arabia’s production cut decision, with increasing calls to suspend military cooperation. According to The New York Times (NYT), the U.S. Congress is considering a measure to ban arms sales to Saudi Arabia for one year if Saudi Arabia does not revoke the production cut, escalating pressure on the kingdom.