“Negotiations on diplomatic relations between Israel and US arms sales and support for nuclear reactor construction
Accepting U.S. pressure, saying, “With high oil prices, we cannot overcome the opposition of the U.S. Congress.”
It’s not a promise to increase production in the long term… Saudi-Russian relations may deteriorate
The Saudi Arabian government has announced its intention to increase oil production from early next year if oil prices rise, an attempt to allay opposition from the U.S. Congress to a deal that would see Saudi Arabia sign a security treaty with the United States in exchange for diplomatic ties with Israel. The Wall Street Journal (WSJ) reported on the 6th (local time).
A year ago, the Saudi government rejected the U.S. government’s request to increase production to curb oil price declines and inflation.
However, the Saudi negotiating team still emphasizes that market conditions are important in oil production decisions, and it is known that the position presented in the negotiations is not a long-term oil price adjustment.
The deal between Saudi Arabia and the United States is that in exchange for Saudi Arabia establishing diplomatic ties with Israel, the United States will sell weapons to Saudi Arabia, provide security guarantees, and support the construction of commercial nuclear reactors.
If Saudi Arabia, which has not had diplomatic relations with Israel since 1948, when the State of Israel was founded, establishes diplomatic relations between Israel and Middle Eastern countries, diplomatic relations between Israel and Middle Eastern countries will greatly expand, which could greatly curb the expansion of Iran and China’s influence in the Middle East. This negotiation must be approved by Congress.
Late last month, White House Middle East Director Brett McGurk and Senior Advisor to the President on Energy and Infrastructure Amuse Hochstein visited Saudi Arabia and emphasized that it would be difficult to receive support from the U.S. Congress while oil prices remain high.
The two officials’ visit came as oil prices rose 25% in the third quarter to trade at $95 per barrel. Oil prices have recently fallen and are trading at $84 per barrel on the 6th.
If Saudi Arabia increases oil production, its relationship with Russia, which has tried to raise oil prices by controlling production after invading Ukraine, could worsen.
OPEC+, a group of 23 oil-producing countries including Saudi Arabia and Russia, decided a year ago to reduce production by 2 million barrels per day, which greatly angered the U.S. government. Afterwards, Saudi Arabia and Russia agreed to further reduce production by the end of this year.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.