Saudi Arabia says Opec+ oil cut 'purely economic'

Saudi Arabia rejected statements criticising the Kingdom as "not based on facts", after last week's Opec+ decision to cut its oil production target despite US objections, saying it served the interests of both consumers and producers.

This decision was adopted through consensus, took into account the balance of supply and demand, and was aimed at curbing market volatility, the Saudi foreign ministry explained in a statement on Thursday.

President Joe Biden had pledged earlier this week that "there will be consequences" for US relations with Saudi Arabia after Opec+ said last week that it would cut its oil production target by 2 million barrels per day.

Opec+, the producer group comprising the Organization of the Petroleum Exporting Countries (Opec) plus allies including Russia, announced its new production target, despite US officials lobbying against such a move for weeks.

The statement also referred to consultations with the United States, in which it was asked to delay the cuts by a month.

The Opec+ move has raised worries in Washington about the possibility of higher gasoline prices right before the November US midterm elections, with Biden’s Democrats trying to retain their control of the House of Representatives and Senate.

The Saudi foreign ministry statement on Thursday referred to consultations with the United States prior to the October 5 Opec+ meeting, in which it was asked to delay the cuts by a month.

"The Kingdom clarified through its continuous consultations with the US administration that all economic analyses indicate that postponing the Opec+ decision for a month, according to what has been suggested would have had negative economic consequences," the Saudi foreign ministry statement said.

The United States accused Saudi Arabia of listening to Moscow, which objects to a Western cap on the price of Russian oil, in response to its conflict with Ukraine.

The Saudi foreign ministry statement, quoting an unnamed official, stressed the "purely economic context" of the oil cut.

Saudi Arabia also said that it viewed its relationship with the United States as a "strategic one" and stressed the importance of mutual respect.

The Gulf Cooperation Council (GCC) issued a statement in support of Saudi Arabia's comments praising the Kingdom's efforts to protect the market from volatility.

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