PresidentJoe Bidenhas reportedly said there would be consequences for Saudi Arabia for collaborating with Russiato trim oil production, an indication that cracks have appeared in the relationship between the two long-time allies.
What Happened:Biden told CNNsJake Tapperin an interview broadcast in October that theres going to be some consequences for what theyve done with Russia,reportedReuters.
Policy Review:As anger boiled over the decision of theOrganization of the Petroleum Exporting Countriesand its allies, including Russia, known as theOPEC+, Bidens staff announced he would re-evaluate the entire relationship with Saudi Arabia.
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Oil prices shot up after the announcement, paring some early losses, with some ETFs also gaining in the process. TheUnited States Brent Oil FundBNO has gained over 1% in the last five days, while theVanguard Energy Index Fund ETFVDE has traded flat in the same period.
White House press secretaryKarine Jean-Pierresaid a policy review would be conducted but did not provide any further details, the report said.
Going against the Biden administration's push, OPEC+ last week announced an output cut of 2 million barrels per day.
Security Threat: John Kirby, the White House national security spokesperson, said Biden would work with Congress "to think through what that relationship ought to look like going forward."
Most U.S. arms sales to Saudi Arabia are done keeping certain regional threat in mind. "Certainly, we won't take our eye off the threat that Iran poses not only to the region but in some ways beyond," Price said.
This story was originally published on Oct. 12, 2022.
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