Surprise OPEC+ Oil Production Cuts Signal That America’s Relations With Saudis Are Deteriorating

In the latest evidence of Washington’s loss of sway over world affairs, the oil cartel that includes Saudi Arabia and Russia is announcing it will cut rates of pumping oil in a move that is bound to exacerbate inflation pressures in America and help Russia’s war efforts in Ukraine. The move, announced at Riyadh Sunday, is yet another blow to President Biden’s foreign policy as the 2024 presidential election nears. For two years, Washington has hammered Saudi Arabia, making the decades-long American Mideast ally a poster boy for human rights violations, and calling it a “pariah state.”Now Riyadh’s de-facto ruler, Crown Prince Mohammed bin Salman, is tightening relations with America’s adversaries, Communist China, Russia, and even Saudi Arabia’s nemesis, Iran. The Crown Prince’s turn away from America has gained pace faster than expected by Mideast watchers. Members of the Riyadh-led Organization of Petroleum Exporting Countries and its allies announced Sunday their intention to cut oil production by 1.15 million barrels a day. Saudi Arabia and Russia would each cut production by half a million barrels a day, while other members of OPEC+, including Russia and other allies, would make cuts as well. In November, the cartel announced it would cut production by two million barrels a day. As a result, oil prices shot up to $95 a barrel and inflation rates spooked Wall Street investors and forced the Federal Reserve to start raising interest rates. Since then prices have settled back a bit, hovering currently around $80 a barrel, and inflationary pressures have eased some.Sunday’s announcement by OPEC+ is expected to once again send oil prices higher. Beyond the harm to America’s economy, the move is seen as designed to replenish Russia’s dwindling coffers and help the Kremlin’s war efforts in Ukraine. Fighting inflation and aiding Ukraine to liberate its Russian-occupied territory have topped the White House policy agenda for longer than a year. Washington’s traditional Mideast alliances are frayed. In addition to Saudi Arabia, Mr. Biden publicly condemns Israel’s government over an internal issue, court reform. At the same time America’s foes are tightening their cooperation.On Thursday Brazil, Russia, India, China, and South Africa, known collectively as Brics, announced their intention to develop a common currency to compete with the heretofore dominance of king dollar in world markets. Last year, as inflation grew, Mr. Biden attempted to mend relations with the Saudi crown prince, known as MbS. In July, he traveled to the kingdom, where he famously fist-bumped Prince bin Salman. By then, however, MbS had already soured on Washington.Last month, the prince surprisingly signed an agreement with Tehran to renew relations. The pact, notably, was chaperoned by America’s top global competitor, Communist China. Beijing is fast pocketing Mideast allies that America has turned its back on.Saudi Arabia, additionally, just announced it would invite President Assad of Syria to next month’s Arab League summit at Riyadh. The invite will end the decade of isolation from pan-Arab politics for the butcher of Damascus. The May 19 summit in Riyadh is bound to further distance Arab countries from America.The summit is unlikely to help another cause that Mr. Biden claimed he would advance: widening the Abraham accords between Israel and Arab countries to include Saudi Arabia. As yet, Washington has not publicly commented on conditions MbS has put on the kingdom establishing relations with Israel. They reportedly include public security guarantees, unconditional arms sales, and help in developing Saudi nuclear capabilities.There is no indication that the Saudi conditions are being seriously discussed. The alliance between America and Saudi Arabia struck on Valentine’s Day 1945 in a meeting between President Franklin Roosevelt and King Aziz, seems to be deteriorating.The announcement today in respect of OPEC+ is an indication that MbS would rather tighten relations with America’s foes than relive that awkward fist bump with Mr. Biden.

Surprise OPEC+ Oil Production Cuts Signal That America’s Relations With Saudis Are Deteriorating

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