S. Arabia says Opec+ oil cut ‘purely economic’ as IEA warns move could tip world into recession

Saudi Arabia rejected as “not based on facts” criticism of an Opec+ decision last week to cut its oil production target despite United States objections and said Washington’s request to delay the cut by a month would have had negative economic consequences. The Opec+ decision was adopted through consensus, took into account the balance of supply and demand and was aimed at curbing market volatility, the Saudi foreign ministry said in a statement on Thursday. US President Joe Biden pledged earlier this week that “there will be consequences” for US relations with Saudi Arabia after Opec+ said last week it would cut its oil production target by two million barrels per day. Opec+, the producer group comprising the Organisation of the Petroleum Exporting Countries (Opec) plus allies including Russia, announced its new production target after weeks of lobbying by US officials against such a move. The Opec+ cut has raised concerns in Washington about the possibility of higher gasoline prices ahead of the November US midterm elections, with the Democrats trying to retain their control of the House of Representatives and Senate.