After Saudi Arabia and members of the Organization of the Petroleum Exporting Countries (OPEC) surprised the world by announcing cuts in oil production, a spokesman for the National Security Council of US President Biden stated that cutting production is not recommended. According to a recent report, Saudi Crown Prince Mohammed bin Salman has told his aides that Riyadh is no longer interested in appeasing the United States.
The increasing shift away from the dominance of the US dollar in global trade and finance
There has been a lot of focus on the members of OPEC and the BRICS countries (Brazil, Russia, India, China and South Africa) recently as many of the members of these groups are shifting alliances. Several major oil producers, including Saudi Arabia, Russia, the United Arab Emirates, Iraq, Kuwait, Oman and Algeria, announced on Sunday, April 2, plans to cut oil production in 2023. The cuts will begin in May, and it is estimated that production will decrease by 1.15 percent. million barrels of oil per day.
After the decision, the White House responded to the news by saying that cutting oil production was not recommended. Despite statements from the Biden administration and several Democratic policymakers vowing consequences the last time major oil producers cut production in October 2022, Saudi Arabia’s leaders don’t seem to care. According to a Wall Street Journal (WSJ) report published on April 3, Prince Mohammed told aides late last year that he was no longer interested in appeasing [United States]. “
According to a report by Summer Said and Stephen Kalin in the Wall Street Journal, “people familiar with the conversation” made it clear that the prince wanted “something for anything he gives Washington.” The report also claims that cutting oil production “has significant political ramifications and could add to Riyadh’s already high tensions with Washington.” Last October, Saudi government officials reportedly mocked President Joe Biden for his mental severity. In July, Biden traveled to Saudi Arabia to meet with the prince and pressure the Saudis to increase oil production.
However, the Saudi government rejected his requests, and after Biden’s departure, the US president was ridiculed in a television broadcast broadcast in Saudi Arabia, describing him as “Sleepy Joe.” At the time, people familiar with the matter told the Wall Street Journal that unnamed members of the Saudi government say the prince and his team are mocking President Biden behind his back. Biden was also ridiculed when he traveled to see the prince and decided not to shake hands with the prince, instead offering a pandemic-inspired fist.
Amid the Saudi government’s message and US tensions with the BRICS nations, the US government’s exceptionalism that inspired the 2004 comedy “Team America: World Police” appears to be fading faster than ever. This year, after a 48-year relationship with only the US dollar, Mohammed Al-Jadaan, the Saudi Minister of Finance, said that the Kingdom is open to trading in currencies other than the US dollar.
Many analysts and economists have confirmed that the US dollar has been supported by the petrodollar scheme since 1944. Recent events in 2023 indicate that the US dollar’s supremacy is declining, and it seems that many officials abroad do not care what it is in the US. thought these days.
What do you think the long-term effects of these tensions between the United States and Saudi Arabia will have on the global oil market and international relations between these two countries? Share your thoughts on this topic in the comments section below.
Image credits: shutterstock, pixabay, wikicommons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the Company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.