US-Saudi Oil Pact Breaking Down as Russia Grabs Upper Hand
An empowered OPEC+ led by Saudi Arabia and Moscow is calling the shots on oil prices, boosting inflation and raising recession risks
For decades, the US-Saudi “oil for security” pact has been a pillar of energy markets. Now it’s wobbling.
Source: Royal Court of Saudi Arabia/Anadolu Agency/Getty Images
Just three years ago, when OPEC+ oil giants fell out, the US found itself playing the role of peacemaker. Now it looks more like their target.
The Saudi-Russia oil alliance has the potential to cause all kinds of trouble for the US economy — and even for President Joe Biden’s re-election campaign. This month’s OPEC+ decision to cut crude output, for the second time since Biden flew to Saudi Arabia last summer seeking an increase, may be just the start.