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NSC Kirby: OPEC Nations "Coerced" Intro Oil Production Cut By Saudi Arabia


White House Coordinator for Strategic Communications John Kirby has told reporters that "other OPEC nations told the US privately they felt coerced by Saudi Arabia to support production cuts."

  • According to Reuters, the US also told Saudi Arabia they should wait until next OPEC meeting to see how thing developed.
  • Kirby says that the "US showed analysis to Saudi Arabia showing there was no market basis to cut oil production."
  • Kirby's comments are latest in an increasingly bitter diplomatic standoff between Washington and Riyadh. The White House will launch a review of the US-Saudi bilateral relationship when Congress returns next month.
  • Saudi officials maintain that the cuts were designed to get ahead of a predicted demand slump, pointing at a tepid market reaction as approval of the production cut.
  • Senate Foreign Relations Committee Chair Bob Menendez (D-NJ) has called for a freeze in the US-Saudi relationship and Senator Richard Blumenthal (D-CT) and Rep. Ro Khanna (D-CA) have unveiled legislation to halt weapons sales to Saudi Arabia.
  • Blumenthal said: "The only apparent purpose of this cut in oil supply is to help the Russians and harm Americans. […] Now, we need to rebalance our relationship.”

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