US Reviewing 'Number Of Response Options' Against Saudi Arabia Over OPEC+ Cuts - Blinken

MOSCOW (UrduPoint News / Sputnik - 07th October, 2022) Washington is considering "a number of response options," including against Saudi Arabia," after the Organization of the Petroleum Exporting Countries (OPEC) decided to cut oil production by two million barrels per day, US Secretary of State Antony Blinken said on Thursday.

"As for the relationship (with Saudi Arabia) going forward, we're reviewing a number of response options. We're consulting with Congress. We will not do anything that would infringe on our interests. That's first and foremost that will guide us," Blinken told a press conference in Lima after a meeting with Peruvian Foreign Minister Cesar Landa.

In 2020, 23 countries, including OPEC members and 10 non-cartel oil producers, reached a deal to voluntarily cut output amid the precipitous drop in oil demand as coronavirus-related shutdowns were taking place worldwide.

After the initial agreement to cut production by 9.7 million barrels per day, the deal was repeatedly revised to match market conditions. OPEC+ reached pre-pandemic production levels in August 2022.

On Wednesday, OPEC+ announced that the alliance agreed to cut oil production by two million barrels per day from November and will take production levels agreed for August as a reference point. The move was made in response to uncertainty in global oil market outlooks, in part caused by Western sanctions on Russian energy deliveries and the G7 plans to introduce a price cap on Russian crude. The decision received backlash from the US, which demanded an increase in production to battle rising domestic prices.