Saudi Arabia this week warned that it could lead Opec+ in cutting oil production, a message apparently aimed at skittish traders. But the kingdom also had another audience in mind: the Biden administration as it prepares to revive a nuclear deal with Iran.
Saudi energy minister Prince Abdulaziz bin Salman was careful not to mention the kingdom’s regional rival, focusing instead on “volatility” in a market where prices had slid by $25 a barrel since early June.
People familiar with the kingdom’s thinking say Riyadh’s sudden intervention, which has boosted oil prices back above $100 a barrel, was motivated in part by a desire to make clear to the US the consequences of allowing Iranian oil back into global markets.
President Joe Biden has pushed Saudi Arabia to raise oil production following Russia’s invasion of Ukraine, culminating in a trip to Jeddah in July that the kingdom hoped would help reset the relationship with Crown Prince Mohammed bin Salman following the murder of journalist Jamal Khashoggi four years ago.
No comments:
Post a Comment