Is Saudi Arabia contributing to rising oil prices?
Saudi Arabia, the world's second largest oil producer behind the U.S., is refusing, along with the rest of OPEC, to increase oil production, contributing to ongoing supply, and by extension, price pressures.
Pandemic-related supply-chain disruptions, rebounding post-lockdown demand and the oil embargo imposed on Russia following its invasion of Ukraine have driven the oil-price spike.
Saudi Arabia has indicated it will not help ease these pressures, declining to arrange calls with President Biden. U.S.-Saudi relations are strained due to the revival of the Iran nuclear deal, U.S. withdrawal of support for the Saudi intervention in Yemen’s civil war and the murder of Jamal Khashoggi. Relations were better under Trump, who persuaded Saudi Arabia to increase production in 2018.
Saudi Arabia "won't bear any responsibility" for the shortages, citing production capacity issues due to a Houthi attack on its oil infrastructure.