Saudi rejects criticisms following OPEC+ production cuts decision
RIYADH, Oct 13, (Agencies): Saudi Arabia rejected reactions against the Kingdom following a decision by OPEC+, which consists of OPEC and non-OPEC countries, to cut production by two million barrels per day starting next month.
A foreign ministry unnamed official was Thursday reacting to comments that Saudi Arabia was taking sides in international conflicts and that OPEC+ decision was political motivated against the US.
Saudi Arabia, he asserted, expressed “total rejection” to these comments which were “not based on facts, and which are based on portraying OPEC+ decision out of its purely economic context.”
The official said the production cut decision was taken unanimously by all OPEC+ members.
He affirmed that the outcome of OPEC+ decisions were adopted by consensus and not based on unilateral decision by a single country.
“These outcomes are based purely on economic considerations that take into account maintaining balance of supply and demand in the oil markets, as well as aim to limit volatility that does not serve the interests of consumers and producers, as has been always the case within OPEC+,” he said.
He clarified through Saudi Arabia’s continuous consultation with the US Administration that all economic analyses indicated that postponing the OPEC+ decision for a month, according to what has been suggested, would have had negative economic consequences.
Principled position
Riyadh, he added, considered any attempts to twist facts about its position regarding the crisis in Ukraine as unfortunate, and would not change its principled position, including its vote to support UN resolutions regarding the RussianUkrainian crisis.
Saudi Arabia also rejected any “dictates, actions, or efforts to distort” its objectives to protect global economy from oil market volatility.
The Kingdom, said the official, considered its relations with the US as strategic, and the pillars of these ties included mutual respect, enhancing common interests, actively contributing to preserve regional and international peace and security, countering terrorism and extremism, and achieving prosperity for the peoples of the region.
Meanwhile, the Gulf Cooperation Council (GCC) welcomed Thursday Saudi Arabia’s rejection to criticisms following a decision by OPEC+ to cut production by two million barrels per day starting next month.
GCC Secretary General Dr. Nayef Al-Hajraf, in a statement, voiced complete solidarity with Saudi Arabia and rejected the baseless criticisms.
Al-Hajraf commended Saudi Arabia’s “important and pivotal” role regionally and internationally on basis of mutual respect, compliance with UN Charter and international law, as well as protecting global economy from fluctuations of oil prices.
The reactions against Saudi Arabia, he added, would not change Riyadh’s balanced position and commitment to international peace and stability.
The Saudi foreign ministry has expressed “total rejection” to reactions to OPEC+ decision and said they were “not based on facts, and which are based on portraying OPEC+ decision out of its purely economic context.”
Saudi Arabia said Thursday that the U.S. had urged the kingdom to postpone a decision by OPEC and its allies including Russia - to cut oil production by a month. Such a delay could have helped reduce the risk of a spike in gas prices ahead of the U.S. midterm elections next month.
A statement issued by the Saudi Foreign Ministry didn’t specifically mention the Nov. 8 elections in which U.S. President Joe Biden is trying to maintain his narrow Democratic majority in Congress. However, it stated that the U.S. “suggested” the cuts be delayed by a month. In the end, OPEC announced the cuts at its Oct. 5 meeting in Vienna.
Holding off on cuts would have meant implementing them just before the election - at a time when they likely couldn’t drastically influence prices at the pump.
Rising oil prices - and by extension higher gasoline prices - have been a key driver of inflation in the U.S. and around the world, worsening global economic woes as Russia’s months-long war on Ukraine also has disrupted global food supplies. For Biden, gasoline prices creeping up could affect voters. He and many lawmakers have warned that America’s longtime security-based relationship with the kingdom could be reconsidered.
The White House has rejected any attempts to link the OPEC request to the elections, but Saudi Arabia issuing a rare, lengthy statement shows just how tense relations are between the two countries. The White House again pushed back Thursday, claiming some unnamed OPEC+ members had been hesitant about a cut it described as a “short-sighted decision.”
“It’s categorically false to connect this to U.S. elections,” National Security Council spokesperson Adrienne Watson said. “It’s always been about the impact on the global economy and impact on families at home and around the world, especially as (Russian President Vladimir) Putin wages his war against Ukraine.”