Saudi Arabia shocked the world when they said they will reduce their oil production. But someone from President Biden’s team said it’s not wise to do that. A report says Saudi Arabian King Mohammed bin Salman told others that his country doesn’t care about trying to please the U.S. anymore.
US & Saudi Arabia’s Tension Taking a Turn for the Worst
Recently, countries from OPEC and the BRICS nations (which stands for Brazil, Russia, India, China, and South Africa) have made some changes in their alliances. On Sunday April 2nd, oil-producing countries like Saudi Arabia, Russia, United Arab Emirates (UAE), Iraq, Kuwait, Oman and Algeria agreed to reduce their production of oil in May 2023. That means they will be producing 1.15 million barrels less per day.
When Saudi Arabia announced their decision, the White House said that it is not a good idea to reduce oil production. This came despite promises made by President Biden and other Democrats in October 2022 which warned of repercussions if Saudi Arabia tried to decrease their output of oil. A report published on April 3rd by Wall Street Journal claims that Prince Mohammed has stated he is no longer interested in pleasing the United States.
According to a report by two people, Prince wants something back for any help he offers Washington. It’s important because it could cause trouble between Saudi Arabia and Washington. In October, the Saudis laughed at President Joe Biden about how sharp his mind was. Then in July, Biden visited Saudi Arabia and asked them to produce more oil.
The government and prince of Saudi Arabia are setting aside how they try to please the United States, and instead becoming closer with China.
The Saudi government didn’t accept President Biden’s requests and later on, some people who were close to the situation reported that Saudis were laughing at him on TV calling him “Sleepy Joe”. Also, when the prince met President Biden and he wanted to bump fists instead of shaking hands, Saudis laughed about it.
In the past few years, tension has grown between the United States and the five biggest economies in the world (the BRICS nations). At the same time, Saudi Arabia’s finance minister announced that after being based on the U.S. dollar for 48 years, they are opening up to using other types of currencies. This is a big change when you consider that comedy movie “Team America: World Police” was heavily inspired by America’s “exceptionalism” — which means they believed it was better than other countries.
Experts and economists have been saying for a while that the U.S. dollar is strong because of what they call ‘petrodollar.’ But recently in 2023, it looks like the strength of the dollar has gone down, and other countries are starting to not care what the U.S. thinks.
What do you think the effects of the differences between the U.S. and Saudi Arabia will be on things like oil prices around the world and how these two countries act with each other? Tell us your ideas below in the comments section!