Biden says ‘everything is on the table’ to fight back at OPEC oil cut
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President Joe Biden on Thursday defended his controversial summer trip to Saudi Arabia as one that was “not about oil,” as his administration prepares options to counter the stunning production cut that OPEC+ has announced.
The production cut comes just three months after Biden punched Crown Prince Mohammed bin Salman during a trip the kingdom used to its public relations advantage following international convictions for the murder of dissident Jamal Khashoggi.
‘We are looking at alternatives. We haven’t made a decision yet,” Biden said as he left the White House for a trip to New York.
He also defended his trip to Saudi Arabia, insisting that his conversation with the world’s No. 2 oil producer was not on the subject. Biden flew there after a visit to Israel, and discussed the war in Yemen, among other things.
“We haven’t made a decision yet,” President Joe Biden said as he left the White House a day after OPEC+ announced a cut in oil production, pushing gas prices up.
“The trip wasn’t essentially about oil. The trip was about the Middle East and about Israel and rationalization of positions. But it’s a disappointment and says there are problems,” Biden said.
A government statement yesterday following the international cartel’s announcement that it would cut production by 2 million barrels a day hinted at a legislative pullout, including antitrust actions against the organization.
“In light of today’s action, the Biden administration will also consult Congress on additional tools and authorities to reduce OPEC’s control over energy prices,” National Security Adviser Jake Sullivan said.
Aboard Air Force One with Biden, economic adviser Brian Deese declined to rule out measures that could punish Saudi Arabia.
“Why would American taxpayers subsidize Saudi security, you know, if they are not willing to subsidize American gas prices?” a reporter asked him.
“So I completely understood the question. I have no announcements about that today,’ Deese replied.
Nor did he rule out a ban on the export of US petroleum or petroleum products.
“We’ve said this before, and I’ll say it again. The president is instructed that we have all options on the table. And it will continue to be,’ says Deese.
He also tried again to keep the focus on US oil companies and the gap between wholesale and retail prices, saying there was a difference of about 30 cents, some of which could be passed on to help consumers.
OPEC’s announcement comes three months after Biden’s infamous fist bump with Crown Prince Mohammed bin Salman
The price cut comes as Russia, a major oil producer, continues its brutal war against Ukraine, which it can finance with oil revenues
Gas prices are up an average of 36 cents across the country from yesterday after the announcement
Rep. Tom Malinowski of New Jersey and two other lawmakers have introduced legislation that would mandate the removal of US troops and missile defense systems in both Saudi Arabia and the United Arab Emirates
Biden’s allies in Congress are already pushing for aggressive countermeasures.
Rep. Tom Malinowski of New Jersey and two other lawmakers have passed legislation that would mandate the removal of US troops and missile defense systems in both Saudi Arabia and the United Arab Emirates.
Both countries are major defense buyers and regional partners. The US has maintained close ties with Saudi since the September 11 attacks, which were carried out by 19 hijackers, 15 of whom are Saudi nationals. The US is also working with several Arab allies to counter Iran, pushing Arab countries to expand economic ties with Israel.
“The bill would also move equipment and defense systems to other areas in the Middle East with the aim of protecting US forces elsewhere,” Malinowski said.
The legislator was disgusted by Politics“We need to stop acting like the suckers in this relationship and reaffirm that the services we provide to these countries require that they take into account our legitimate interests and concerns. And if they don’t want that, they have to find another friend.’
Nothing is off the table, a board official told the publication.
“We will assess what other measures make sense in the breadth of our relationship,” the official said. “We want to see what Congress can pass… and we’ll move on from there.”
The November elections provide a critical backdrop, with voters seeing inflation as one of the key issues and the government lashing out at spikes in gas prices and seeking credit for declines.
Biden was on his way to New York to bolster two congressional districts and raise money for the Democrats’ campaign to retain control of the Senate.
Following the announcement, gas prices across the country rose an average of 36 cents from yesterday.