President Biden will “continue to reassess” the US relationship with Saudi Arabia after a group of international oil exporters and Russia decided to significantly cut oil production in response to falling fuel prices, a spokesman for the National Council told CNN Security John Kirby. The latest: Biden told CNN in an interview that aired Tuesday that there would be “consequences” for Saudi Arabia from the decision to cut oil production, declining to elaborate. Leading the story: The White House warned last week that Biden may support legislation aimed at reducing OPEC’s control over energy prices, suggesting that Biden is considering a new, tiered approach with the Saudis, reports Alayna Treene and Hans Nichols of Axios.
Kirby repeated that warning on Tuesday, stressing that Biden is “willing” to work with Congress to redefine the relationship.
Why it matters: OPEC+’s decision to cut oil production by 2 million barrels per day starting in November could have ripple effects around the world. In the U.S., the move could send gas prices up again — just before the midterm elections, Axios’ Ben Geman reports. What they’re saying: “I think the president has been very clear that this is a relationship that we have to continue to reevaluate, that we have to be willing to revisit,” Kirby told CNN.
“And certainly in light of the OPEC decision, I think that’s where he’s at and he’s willing to work with Congress to think about what that relationship should look like going forward,” Kirby added. Kirby later added on a call with reporters that OPEC’s move to cut production was “a short-sighted decision that benefited Russia at a time when no one, in any capacity, should be trying to benefit Vladimir Putin.” .
On the Saudi side, Oil Minister Abdulaziz bin Salman said OPEC+ was simply trying to pre-empt a potential drop in demand, Axios’ Dave Lawler reports. The big picture: Biden administration officials tried to dissuade OPEC+ from the decision in a last-minute lobbying effort earlier this month, saying the cut could be a “total disaster” and could be construed as a “hostile act.” , according to CNN. .
Biden faced backlash over his trip to Saudi Arabia over the summer and clashed with Saudi Crown Prince Mohammed bin Salman ahead of a meeting aimed at recalibrating US-Saudi relations and bolstering US influence in the region.
Go deeper: Editor’s Note: This article has been updated with new details throughout.
