A bump and a miss: Saudi oil cut slaps down Biden's outreach
U.S. President Joe Biden on Thursday effectively acknowledged the failure of one of his biggest and most humiliating foreign policy gambles: a fist-bump with the de-facto leader of Saudi Arabia, the crown prince associated with human rights abuses.
Biden's awkward encounter with Mohammed bin Salman in July was a humbling attempt to mend relations with the world's most influential oil power at a time when the US. was seeking its help in opposing Russia's invasion of Ukraine and the resulting surge in oil prices.
That fist bump three months ago was followed by a face slap this week from Prince Mohammed: a big oil production cut by OPEC producers and Russia that threatens to sustain oil-producer Russia in its war in Ukraine, drive inflation higher, and push gas prices back toward voter-angering levels just before U.S. midterms, undercutting the election prospects of Biden and Democrats.
Asked about Saudi Arabia's action, Biden told reporters on Thursday it was "a disappointment, and it says that there are problems" in the U.S.-Saudi relationship.
A number of Democrats in Congress were calling on the U.S. to respond by pulling back on its decades-old provision of arms and U.S. military protection for Saudi Arabia, charging that Prince Mohammed had stopped upholding Saudi Arabia's side of a more than 70-year strategic partnership. The relationship is based on the U.S. providing the kingdom with protection against its outside enemies, and on Saudi Arabia providing global markets with enough oil to keep them stable.
Calling the oil production cuts "a hostile act," New Jersey Democratic Rep. Tom Malinowski led two other lawmakers in introducing legislation that would pull U.S. troops and Patriot missile batteries out of the kingdom.
"What Saudi Arabia did to help Putin continue to wage his despicable, vicious war against Ukraine will long be remembered by Americans," Senate Majority Leader Chuck Schumer said, adding, "We are looking at all the legislative tools to best deal with this appalling and deeply cynical action."
The U.S. has no plans at the moment to withdraw military personnel or equipment from Saudi Arabia, State Department deputy spokesman Vedant Patel said Thursday.
Congress and the administration were reacting to the announcement of a bigger than expected cut of 2 million barrels a day by the OPEC-plus group, led by Saudi Arabia and Russia. The production cut is likely to drive up prices, bolstering the oil revenue Russia is using to keep waging its war in Ukraine despite U.S.-led international sanctions and further shaking a global economy already struggling with short energy supply.
Saudi oil minister Abdulaziz bin Salman, a half-brother of the crown prince, insisted at the OPEC-plus session there was no "belligerence" in the action. But he smiled as he separately told Arabic-speaking reporters that oil producers were "keeping the world on its toes."
As a candidate, Biden had made a passionate promise to make the Saudi royal family a "pariah" over human rights abuses, especially Saudi officials' killing of U.S.-based journalist Jamal Khashoggi inside the Saudi consulate in Istanbul in 2018.
The U.S. intelligence community formally concluded that Prince Mohammed, who wields much of the power in Saudi Arabia in the stead of his aging father, King Salman, had ordered or approved of Khashoggi's killing.
Biden as president disappointed rights activists when he opted not to penalize Prince Mohammed directly, citing his senior position in the kingdom and the U.S. strategic partnership with Saudi Arabia.
Then Russia's February invasion of Ukraine worsened an already tight global oil market, driving up gasoline prices and inflation overall. Ally Israel and some in the administration argued that smooth relations between Riyadh and Washington had to be the U.S. priority.
As U.S. prices at the pump rose and Biden's poll ratings fell further, senior administration officials began shuttling to the Gulf, seeking to soothe Prince Mohammed's anger at Biden's campaign remarks and the U.S. findings in Khashoggi's killing. That led to Biden paying his first visit as president to Saudi Arabia in July, putting presidential prestige behind the attempt to get U.S.-Saudi relations, and the global oil supply, back on steadier ground.
In Jeddah, Biden stopped short of offering a much-anticipated handshake. Instead, Biden, looking frailer and more stooped in comparison with Prince Mohammed, who is in his late 30s, leaned in to offer an out-of-character fist bump. Prince Mohammed reciprocated. Any smiles on the two men's faces as their knuckles touched were fleeting.
Critics deplored Biden's outreach to a prince accused of ordering the imprisonment, abduction, torture and killing of those, even fellow royals and family members, who oppose him or express differing views.
Even if "you're not willing to use the sticks with MBS, then don't give up the carrots for free," Khalid al Jabri, the son of a former Saudi minister of state, Saad al Jabri, said Thursday, using the prince's initials.
The senior al Jabri accuses Prince Mohammed of sending a hit squad after him in 2018, and of detaining two of his children to try to force his return. Prince Mohammed denies any direct wrongdoing, although he says as a Saudi leader he accepts responsibility for events on his watch.
Khalid al Jabri, who like his father now lives in exile, offered an argument echoed by rights advocates, Democratic lawmakers and others:
"That is one major flaw of the Biden policy so far, that in this kind of U.S.-Saudi rapprochement, it has been lopsided, it's been one-way concessions. And that doesn't work for MBS."
He cited President Donald Trump's handling of oil-market upheaval in 2020, when Prince Mohammed and Russian President Vladimir Putin were flooding the global market with cheap oil, driving U.S. producers of costlier shale oil to their knees. Trump brought it to an end with some phone calls and, by some news accounts, an indirect threat to Saudi Arabia's U.S.-provided security.
"Trump didn't need to take the plane to Saudi...He didn't need to give fist bumps," Khalid al Jabri said. "He's a bully who knew how to deal with another bully."
Saudi Arabia has made a couple of moves that benefited the U.S. since Biden's visit. Saudi Arabia was among the intermediaries who recently won the release of two Americans and other foreigners captured by Russia as they fought for Ukraine. And OPEC-plus made a modest increase in oil output shortly after the visit.
Far sharper oil production cuts since then, however, have offset that, even before this week's. Prince Mohammed and other Saudi officials also have kept up outwardly warm dealings with Russian officials.
And rights advocates point to a series of multidecade prison terms handed down to Saudi men and women over the mildest of free speech, especially tweets, since Biden's visit.
By November, the Biden administration will have to decide whether to make another major concession to the prince. A U.S. court set that deadline for the U.S. to determine whether it will weigh in to agree or disagree with Prince Mohammed's lawyer that the prince has legal immunity from a lawsuit in U.S. federal court over the killing of Khashoggi.
Lawmakers are scheduled to be out of Washington until after the Nov. 8 midterm elections and when they return will be focused on funding federal agencies for the full fiscal year through September 2023. Prospects for a lame-duck Congress taking up the bill introduced by Malinowski and the two other lawmakers are slight.
Rising gas prices would be bad news for Democrats heading into the final stretch of the midterm elections, while Republicans remain eager to capitalize on the decades-high inflation and rising cost of living, with high gas prices a constant reminder as voters fill up their tanks.
Sen. Dick Durbin, the second-highest ranking Democrat in the Senate, had one of the more scathing reactions to OPEC's announcement.
"From unanswered questions about 9/11 & the murder of Jamal Khashoggi, to conspiring w/ Putin to punish the US w/ higher oil prices, the royal Saudi family has never been a trustworthy ally of our nation. It's time for our foreign policy to imagine a world without their alliance," he tweeted Thursday.
Chris Megerian in Washington and Jill Colvin in New York City contributed
The Bank of Canada hiked its key policy rate by half a percentage point to 4.25 per cent -- the highest it's been since January 2008 -- on Wednesday in its final rate decision of a year that has been marked by stubbornly high inflation and rapidly increasing interest rates.
opinion | How to get the increased GST tax credit
To help combat inflation and help lower- and modest-income families, over the span of six months, Ottawa is issuing an additional one-time GST tax credit to eligible taxpayers. Personal finance contributor Christopher Liew breaks down who's eligible for the increased GST credit, explain how to get it, and how much you could receive.
Canadians' budgets are being stretched thin as the cost of living climbs -- and to compensate, some are taking on a side hustle.
Food prices in Canada will continue to escalate in the new year, with grocery costs forecast to rise up to seven per cent in 2023, new research predicts.
Nine out of 10 Canadians believe there could be a recession in 2023, according to a new national survey, with four out of 10 calling it 'likely.'
At first glance, it might seem like the deals have never been better as posters in store windows and online ads trumpet a steady stream of holiday sales. But some consumers say the discounts are more hype than real.
With the 2023 post-secondary education application deadlines approaching, many students across Canada are looking for alternatives to university and college, leaving parents anxious taking a ‘gap year’ could mean they never return to school.
Wouldn't it be nice to never have to work again? While this may sound like a dream to many, it is entirely possible. CTVNews.ca personal finance contributor Christopher Liew shares a handful of helpful tips on how to potentially achieve financial independence.