Saudi Arabia rejected as “not based on facts” statements criticizing the kingdom after an OPEC+ decision last week to cut its oil production target despite U.S. objections. This decision was adopted through consensus, took into account the balance of supply and demand, and was aimed at curbing market volatility, the Saudi foreign ministry explained in a statement on Thursday.

President Joe Biden pledged earlier this week that “there will be consequences” for U.S. relations with Saudi Arabia after OPEC+ said last week it would cut its oil production target by 2 million barrels per day.

OPEC+, the producer group comprising the Organization of the Petroleum Exporting Countries (OPEC) plus allies including Russia, announced its new production target after weeks of lobbying by U.S. officials against such a move.

The United States accused Saudi Arabia of listening to Moscow, which objects to a Western cap on the price of Russian oil, in response to its conflict with Ukraine.

The Opec+ move has raised worries in Washington about the possibility of higher gasoline prices right before the November US midterm elections, with Biden’s Democrats trying to retain their control of the House of Representatives and Senate.

The Saudi foreign ministry statement, quoting an unnamed official, stressed the “purely economic context” of the oil cut.

“The Kingdom clarified through its continuous consultations with the U.S. administration that all economic analyses indicate that postponing the OPEC+ decision for a month, according to what has been suggested would have had negative economic consequences,” it said.

Saudi Arabia also said that it viewed its relationship with the United States as a "strategic one" and stressed the importance of mutual respect.

Credits: Reuters