Saudi Arabia announces plan to cut oil production
With oil production cut, the Saudis send a message to the U.S.
Saudi Arabia’s coldly pragmatic decision this past weekend to cut oil production and raise prices sent a simple message: The United States doesn’t call the shots in the Persian Gulf or the oil market anymore. For better or worse, the era of American hegemony in the Middle East is over.
Crown Prince Mohammed bin Salman pressed OPEC producers on Sunday to reduce production by about 1 million barrels a day, which boosted the price of crude oil by more than 6 percent to about $85 a barrel. For a Biden administration struggling to contain inflation and avoid recession, the Saudi-led price increase was as welcome as a poke in the eye.
Saudi Arabia is hedging its bets, and so is the United States. Neither country wants a break in relations, but leaders in both capitals feel disrespected. It’s not an easy or stable balance — especially for Israel, which wants better relations with Riyadh but depends absolutely on the reliability of U.S. power in the region.
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