March 14, 2022
1 min read

White Houses faces standoff with Saudi, UAE as oil prices soar

With the most serious oil shock in decades now a reality, US President Joe Biden’s attempt to cushion the blowback continues to meet resistance from the two allies he needs the most, the Guardian reported…reports Asian Lite News

Saudi Arabia’s Crown prince Mohammed bin Salman, and his counterpart in the United Arab Emirates (UAE), Mohammed bin Zayed, are yet to agree to a phone call with Biden – a scenario all but unthinkable during previous administrations.

Biden’s immediate priority is for both countries to help exert maximum economic pressure on Russia by cranking up their oil output.

Each capital is a major supplier of oil, with excess capacity, which would soften the effect on US consumers through fuel prices before midterm elections in November that threaten Democratic control of Congress.

With relations between the Middle East oil powers and Washington at their lowest ebb in modern times, though, a reckoning is due that may realign the regional order on terms that favour Riyadh and Abu Dhabi.

Both leaders have made it clear that they will settle for nothing less, and are ready to extract their price, the Guardian reported.

As if to show the Biden administration what it could do, the UAE ambassador to Washington, Yousef al-Otaiba, said on March 10 that it favoured production increases “and will be encouraging Opec to consider higher production levels”, leading oil prices to fall by 13 per cent the next day.

ALSO READ: UAE, Saudi decline to take calls from White House on oil prices

But no action to increase supply followed and by the week’s end the price per barrel was back up to almost $130, an uncomfortably high level for Biden to take to the midterms.

However, the standoff involves far more than oil.

In Riyadh, Prince Mohammed feels snubbed by Biden’s refusal to engage with him ever since he took office.

The murder of the Saudi dissident Jamal Khashoggi by the Crown Prince’s security aides, the war on Yemen, the jailing of rights activists and the boycott of Qatar have made him a pariah to the administration, the Guardian reported.

Previous Story

Kerala govt vows support for Ukraine returned students

Next Story

Iran’s economic benefits must be ensured in Vienna nuke talks: Spokesman

Latest from Arab News

G42 AI tool boosts procurement by 40%

Abu Dhabi’s tech giant leads the charge in AI-driven operational transformation with (In)Business Procurement platform. Abu Dhabi-based global technology powerhouse G42 has taken a major leap in enterprise digital transformation with the

Saudi, Indonesia seal $27bn in deals

Saudi Arabia and Indonesia deepen ties with $27bn in agreements, boosting trade, energy, defence and pilgrimage cooperation, signalling a new chapter in strategic partnership. Saudi Arabia and Indonesia inked a raft of

UN urges investments in Syria

Rebuilding Syria requires not only emergency relief but sustained investment in basic services, economic recovery, and stability, says UN Office in Syria. A high-level United Nations delegation has called for increased international

Saudi deploys first THAAD missile unit

Riyadh boosts its long-range missile defence with U.S.-made THAAD system, amid growing regional missile threats. Saudi Arabia has officially activated its first Terminal High Altitude Area Defence (THAAD) missile unit, marking a

‘Hands off West Bank’

A wave of condemnation from across the Middle East and Muslim-majority nations has surged following calls by Israeli Justice Minister Yariv Levin to impose formal Israeli sovereignty over the occupied West Bank.
Go toTop

Don't Miss

Egypt reiterates support to UAE, Saudi on security

Cairo also considered any threat to the region is a

Modi to visit UAE today

After attending the G7 summit held in Schloss Elmau, Prime