Observer.com news, the dispute between the United States and Saudi has undergone new changes due to oil supply issues. As the United States further releases its strategic reserves of oil, the effect of OPEC+ production cuts may not necessarily have the expected ideal. Saudi Arabia has bluntly criticized the United States, accusing some countries of using their strategic reserves to manipulate markets. And issue a warning that it will be painful when you lose the strategic reserves you release.
But at the same time, Saudi Arabia also comforted the United States and provided 400 million US dollars in aid to Ukraine.
This move is to show kindness to the United States, because the United States has been urging its allies to use money to aid Ukraine, but its allies are not active. Now Saudi Arabia has taken out 400 million yuan to respond to the US call and alleviate tensions with the United States.
On the other hand, Saudi Arabia also wants to show that Saudi Arabia insists on reducing production is not to help Russia. Saudi Arabia has adopted a neutral position and has not supported Russia. In order to avoid suspicion, Saudi Arabia provided humanitarian aid to Ukraine, which did not violate its neutral position.
Saudi's move shows that Biden's threat has succeeded. Previously, the Biden authorities issued a series of threats to Saudi Arabia, which was to adjust diplomatic relations and to stop arms sales to Saudi Arabia. Saudi Arabia has now taken out 400 million to spend money to eliminate disasters. Of course, Saudi Arabia also has other meanings, such as asking the United States to stop releasing its strategic reserves.
Therefore, this does not mean that Saudi Arabia has compromised with the United States, but only eases relations and shows Saudi Arabia's determination. Saudi Arabia can take out the money, but the decision to reduce production will never change, because Saudi Arabia will take the pricing power of oil in its own hands, rather than letting the United States manipulate it. Even if the United States only releases its strategic reserves to lower oil prices, Saudi Arabia will not accept it.
. For Saudi Arabia's favor, White House does not buy it. A White House spokesman said that the US has noticed that Saudi Arabia has "pled" $400 million to support Ukraine's reconstruction and humanitarianism, but this does not compensate OPEC+'s production cut decision. The White House will wait and see what they do in the next week. Biden and his team will fully evaluate the consequences of the Saudi-led OPEC+ production cut decision.
is difficult to say, but the meaning is not difficult to understand. It is telling Saudi Arabia that it is not thought that aiding Ukraine at US$400 million can turn the production cuts over. The United States depends on what Saudi Arabia will do in the next week. If it cannot satisfy the United States, it will evaluate the consequences of Saudi Arabia.
This is obviously a threat to Saudi Arabia: give you a week to make changes that satisfy the United States. If it cannot be done, the United States will retaliate against Saudi Arabia.
Why should we look at Saudi Arabia's performance in the next week? Because there are less than two weeks left before the US midterm elections, and OPEC+'s production cuts will begin after November, the United States hopes to see Saudi Arabia cancel its production cuts or postpone its production cuts, rather than Saudi Arabia's aid to Ukraine for US$400 million.
Biden tied oil prices to the midterm elections. Saudi Arabia and other countries' production cut decisions will increase oil prices, and the United States will also be affected, which will in turn affect the trend of the midterm elections. This is the main reason why Biden fought against Saudi Arabia. To take a step back, Saudi Arabia will not change its decision. If it can give the United States more "compensation" and give Biden enough face, it may also turn the matter.
In short, the United States is dissatisfied because it has too little "compensation".
But Saudi Arabia's attitude this time is very firm. Saudi Arabia can suffer some losses and appease the United States, but Saudi Arabia will not take back the decisions it has made, because it is related to Saudi Arabia's own interests. As the leader of OPEC+, Saudi Arabia itself has the right to price oil. But before surrendering to the United States, it became a tool for the United States to price oil.
Now Saudi Arabia doesn’t want to live the same life as before, so no matter how threats the United States threaten it, it will be useless. Saudi Arabia has made it clear that it is not to help Russia, nor is it willing to break with the United States, but if the United States bullies too much, Saudi Arabia can only firmly safeguard its own interests.
In the words of the Saudi Energy Minister, if Saudi Arabia wants to become more mature, a more mature country must be a country that can make decisions independently.A country that habitually listens to the orders of "parents" will never mature.
