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Oil States Choose Weaker US Ties Over More Output – Barron’s

Saudi and the UAE want the US to make policy concessions before they boost output to reduce global oil prices, analyst Greg Priddy says


Saudi China oil sales
Saudi Arabia and the UAE want the US to make policy changes before they agree to boost oil output, but there is no certainty that Biden will make changes that the oil states want, one analyst says. Photo: Reuters.

 

Saudi Arabia and the United Arab Emirates have “chosen to severely weaken their ties with Washington” rather than increase the supply of oil, Barron’s reports. They are tying their threat to withhold increased production to their demands for US policy changes on other issues in the Middle East, including greater US support for the war in Yemen, the report said.

They want Biden to back off his goal of restoring the 2015 nuclear deal with Iran, for the US to deal directly with Crown Prince Mohammad bin Salman, and to restore its designation of the Houthi movement as a terrorist organisation, the report said. While the US may make some concessions, there’s no sign yet it’ll agree to these other demands, the story said.

Read the full story: Barron’s.

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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