: Saudi Arabia defends OPEC+ production cut after Biden vows there will be ‘consequences’

by | Oct 13, 2022 | Stock Market

Saudi Arabia’s ministry of foreign affairs put out a rare statement on Thursday defending the Organization of the Petroleum Exporting Countries’ decision last week to cut production. Last week, the OPEC+ grouping that also includes Russia agreed to cut their supply target by 2 million barrels a day, beginning in November.

That triggered a rise in oil prices, though they have eased this week: U.S. oil benchmark West Texas Intermediate crude for November delivery


was up 0.3% to $87.32 a barrel on Thursday. The global benchmark Brent crude

for December was up 0.24% to $92.66 a barrel on ICE Futures Europe. The move stoked already strained geopolitical tensions between Saudi Arabia and the U.S, with President Joe Biden telling CNN that there will be “consequences” for the cut. Biden’s national security adviser Jake Sullivan came out to say that he “can’t put a date or a time on when the president will announce any given step” on when Saudi Arabia would face consequences, that could involve Biden asking Congress to possibly support pausing arms sales to the country.

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