Will Biden Warning of "Consequences" Become Reality If Saudi Arabia Cuts Oil Production?
After OPEC announced a significant reduction in oil output last October, President Biden threatened that Saudi Arabia, the most influential member of OPEC, would face "consequences" if production cuts occurred. OPEC backed down. Will he carry through on the warning? Will the Republican House stand in the way?
Officials from the White House have said that an increase in oil prices would assist Russia in financing its conflict in Ukraine, and the President has said that Congress will take action to impose sanctions against Saudi Arabia. Of course, that was when a Democratic majority controlled the House.
The threat of sanctions by Biden in October resulted in Saudi Arabia and OPEC not carrying through with oil production cuts.
Now, however, following former President Trump’s announcement of his candidacy, Saudi Arabia’s Crown Prince Mohammed bin Salman Al Saud may be intentionally stoking the fires of inflation in hopes of returning Trump to the Oval Office.
That strategy is risky. If the Biden Administration puts forward sanctions to the Republican-controlled House of Representatives and its GOP members balk, they will hand Biden evidence that they not only didn’t fulfill their election promise of taming inflation, they intentionally drove gasoline prices and inflation higher as we approach our national election in 2024.
The news report below is from October and includes an interview in which President warned Saudi Arabia not to cut oil production.