CAIRO: Saudi Arabia rejected as “not based on facts” criticism of an OPEC+ decision last week to cut its oil production target despite US objections and said Washington’s request to delay cut by a month would have had negative economic consequences.

OPEC plus decision was adopted through consensus, took into account balance of supply and demand and was aimed at curbing market volatility, Saudi foreign ministry said in a statement. US President Joe Biden pledged earlier this week, “There will be consequences” for US relations with Saudi Arabia after OPEC plus said last week it would cut its oil production target by 2 million barrels per day.

OPEC plus, producer group comprising Organisation of Petroleum Exporting Countries (OPEC) plus allies including Russia, announced its new production target after weeks of lobbying by US officials against such a move. OPEC plus cut has raised concerns in Washington about possibility of higher gasoline prices ahead of November US midterm elections, with Democrats trying to retain their control of House of Representatives and Senate.

Saudi foreign ministry statement referred to consultations with United States prior to October 5 OPEC plus meeting in which it was asked to delay cuts by a month. “Kingdom clarified through its continuous consultations with US administration that all economic analyses indicate that postponing OPEC plus decision for a month, according to what has been suggested would have had negative economic consequences,” Saudi foreign ministry statement said.

United States accused Saudi Arabia of kowtowing to Moscow, which objects to a Western cap on price of Russian oil in response to its invasion of Ukraine. Saudi foreign ministry statement, quoting an unnamed official, stressed “purely economic context” of oil cut. It also said kingdom views its relationship with United States as a “strategic one” and stressed importance of mutual respect.

Gulf Cooperation Council issued a statement in support of Saudi Arabia’s comments praising kingdom’s efforts to protect market from volatility.

Published in The Daily National Courier, October, 14 2022

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