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OPEC: Saudi Arabia and UAE back OPEC cuts as US envoy warns of ‘uncertainty’

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Saudi Arabia United Arab Emirates on Monday OPEC and its allies cut Oil production, even as the US envoy warned of “economic uncertainty” about the world’s future.

Though cordial, comments at the Abu Dhabi International Petroleum Exhibition and Conference indicated a stark divide between the United States and the Gulf Arab states it provides military support in the wider Middle East.

Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman alluded to this in a brief speech at the event, pointing to upcoming UN climate change summits in Egypt and the United Arab Emirates.

“We owe no one but us,” the prince said to applause.

The defence was echoed by the UAE’s energy minister, Suhail al-Mazrouei. While saying OPEC and its allies “can make a call whenever there’s demand” to boost production, he gave no hint that such a boost is coming anytime soon.

“I can assure you that our colleagues in the United Arab Emirates and OPEC and OPEC+ are keen to give the world what it needs,” al-Mazrouei said. “But at the same time, we’re not the only producers in the world.”

The loose alliance of OPEC and other countries led by Russia agreed in early October to cut output by 2 million barrels a day starting in November.

OPEC, led by Saudi Arabia, insists its decision stems from concerns about the global economy.

Analysts in the U.S. and Europe have warned of an imminent recession in the West due to inflation and subsequent rate hikes, as well as food and oil supplies affected by Russia’s war with Ukraine.

“The global economy is in danger,” insisted Sultan Ahmed Jaber, managing director of the state-run Abu Dhabi National Oil Company.

Meanwhile, U.S. politicians have reacted angrily to a decision that could keep gasoline prices high. The average price of a gallon of regular gasoline in the United States is now $3.76, down from the record price of $5 a gallon in June, but still high enough to keep consumers out of pocket. Benchmark Brent crude was at $95 a barrel on Monday.

“I think at the end of the day, we’re facing uncertainty in the global economy,” U.S. energy envoy Amos Hochstein said.

After the event in the UAE, Hochstein declined to speak to The Associated Press.

President Joe Biden, who traveled to Saudi Arabia in July and collided with Crown Prince Mohammed bin Salman before a meeting, recently warned the country that “what they do will have some consequences. “.

Saudi Arabia hit back, publicly claiming that the Biden administration seeks to delay OPEC production cuts by a month, which could help reduce the risk of a surge in natural gas prices ahead of the Nov. 8 U.S. midterm elections.

The back-and-forth between Riyadh and Washington shows tensions between the two countries remain tense since the killing of Washington Post columnist Jamal Khashoggi by Saudi security forces in 2018.

U.S. intelligence agencies believe the killing was ordered by Prince Mohammed.

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