Wednesday, May. 4, 2022
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.
This fact brief is responsive to conversations such as this one.
Sources
- US Energy Information Administration What countries are the top producers and consumers of oil?
- Fortune OPEC+ refuses to up its oil output as prices tick higher
- USA Today Fact check: Rising gas prices due to high demand and low supply, not Biden's policies
- World Economic Forum How does the war in Ukraine affect oil prices?
- Guardian Saudi Arabia and UAE leaders ‘decline calls with Biden’ amid fears of oil price spike
- CNBC Trump, Saudi king agree to production boost to battle rising oil prices, and offset Venezuela, Iran supply woes
- CBS News Saudi Arabia says it's not responsible for high oil prices
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