Saudi says US reaction to Opec+ decision is 'emotional'

Saudi Arabia has labeled US reactions to the recent Opec+ output decision as emotional, and again defended the move to cut production quotas by 2mn b/d as purely economic and taken unanimously.

The comments were made by foreign minister Prince Faisal bin Farhan al-Saud to state-owned al-Arabiya television.

US President Joe Biden said on 11 October that he will re-evaluate US-Saudi relations in light of the Opec+ decision, although a senior White House official said afterwards that no decisions were imminent. But US lawmakers have already proposed legislation targeting Opec for what they describe as anti-competitive behavior, along with measures to freeze security co-operation and even remove troops from Saudi Arabia, and Washington will not proceed with discussions scheduled to take place later this month with Saudi Arabia and other Gulf Co-operation Council states on security co-operation and on Iran.

"The discussion about dismantling the organisation [Opec] is an emotional one," Prince Faisal said. "At the end of the day, the damage to the global market will be grave.

"When prices sharply dropped, there were demands, not only from the US administration but also from congressmen, to [Saudi Arabia] and to Opec, to work on stabilising oil markets," he said.

Prince Faisal noted a lack of similar management in gas markets, and contrasted prices for that commodity with those of oil, echoing remarks made by Saudi energy minister Prince Abdulaziz bin Salman after the Opec+ meeting.

"We can observe how in gas markets, where there is no similar performance in management, prices have multiplied way more than the increases in oil markets," the foreign minister said.

He reiterated the Opec+ decision was not a political move, but was instead "purely economic and was taken unanimously by [Opec+] member states."

Opec's rationale for the 2mn b/d cut to output quotas is that heightened concerns over an inflation-driven economic slowdown are weighing on the outlook for oil demand. In its Monthly Oil Market Report issued today, Opec cut its projection for demand growth by 460,000 b/d for this year and by 360,000 b/d for 2023.

"Everyone is aware that Opec serves the interests of the market, the interests of the producers and consumers," Prince Faisal said.

But the US administration seems keen on singling out Riyadh for criticism, rather than targeting all the Opec members.

"It was an Opec+ cartel decision, but, clearly, Saudi Arabia is the leader of that cartel," national security council communications coordinator John Kirby said on 11 October. Prince Faisal said Saudi Arabia's relationship with the US "has been institutionalised since it was established."

By Bachar Halabi and Haik Gugarats