Joe Biden warns of ‘consequences’ for Opec as it sides with Russia even as Saudi Arabia attempts de-escalation

Saudi foreign minister says move was ‘purely economic’

Joe Biden has warned of “consequences” for Saudi Arabia after the Opec+ group announced a cut to oil production, in line with Moscow’s wishes.

The 13-member Opec+ – a larger version of the organisation to include non-OPEC members that was formed in 2016 – said last week that it would cut its oil production by 2 million barrels per day in November, sending prices soaring ahead of winter.

The decision came in spite of US objections and a meeting between Mr Biden and Saudi crown prince Mohammed bin Salman Al Saud in July over the issue of global energy prices.

Speaking with CNN on Tuesday, Mr Biden said Saudi Arabia – the de facto leader of the Opec+ group of oil producers – would face “consequences” as a result of the move to cut oil production.

It remains unclear how Washington DC would respond to the move, however, with US lawmakers calling for a complete reassessment of the US-Saudi relationship in the wake of the Opec+ decision, including an end to arms sales.

“We’re going to react to Saudi Arabia and we’re doing consultation when they come back. We will take action,” Mr Biden added to reporters on Wednesday.

Seeking to de-escalate the US response on Tuesday, Saudi foreign minister Prince Faisal bin Farhan said his country shared a “strategic” partnership with the US and that the Opec+ was “purely economic”.

“Military cooperation between Riyadh and Washington serves the interests of both countries and has contributed to stability in the region,” he was reported as telling the TV channel Al Arabiya.

Despite that statement, the US has condemned Opec+ for the cut in oil production with White House press secretary Karine Jean-Pierre saying it was “clear that Opec+ is aligning with Russia” following the announcement.

US President Joe Biden meeting Saudi crown prince Mohammed bin Salman in July (VIA REUTERS)

Both Saudi Arabian and Russia have benefited from higher energy prices since Moscow’s war on Ukraine began in February this year, with Russia seeking a cut in oil production to further push up prices.

The US, as the world’s largest consumer, and European countries – many of which were energy dependent on Moscow – have faced severe economic consequences as a result of the war as they seek to support Ukraine.

Notably, Opec+’s decision to cut production comes just weeks before the midterm elections in the US, with Mr Biden in a struggle to remain in control of both houses of Congress.

Russia’s top energy official, Alexander Novak, was in attendance at the Opec+ meeting in Vienna, Austria, last week when the decision was made, the FT reported.