Saudi Arabia, United States clash over reason for OPEC+ oil cut - Reuters.com

CAIRO, Oct 13 (Reuters) - Saudi Arabia rejected arsenic "not based connected facts" disapproval of an OPEC+ determination past week to chopped its lipid accumulation people contempt U.S. objections, and said connected Thursday that Washington's petition to hold the chopped by a period would person had antagonistic economical consequences.

The White House pushed back against that connected Thursday, saying it presented the Saudis with an investigation that showed the cuts could wounded the satellite economy. The back-and-forth has added to what has already been a frosty play of relations for the 2 countries, who person had an energy-for-security confederation for decades.

OPEC+, the shaper radical comprising the Organization of the Petroleum Exporting Countries (OPEC) positive allies including Russia, past week announced a cut of 2 cardinal barrels per time to its accumulation people aft weeks of lobbying by U.S. officials against specified a move.

The determination came adjacent though substance markets stay tight, with inventories successful large economies astatine little levels than erstwhile OPEC has chopped output successful the past.

The OPEC+ chopped has raised concerns successful Washington astir the anticipation of higher gasoline prices up of the November U.S. midterm elections, with the Democrats trying to clasp their power of the House of Representatives and Senate.

U.S. President Joe Biden pledged earlier this week that "there volition beryllium consequences" for U.S. relations with Saudi Arabia aft OPEC+'s move.

The OPEC+ determination was adopted done consensus, took into relationship the equilibrium of proviso and request and was aimed astatine curbing marketplace volatility, the Saudi overseas ministry said successful a connection connected Thursday.

The Saudi overseas ministry connection referred to consultations with the United States anterior to the Oct. 5 OPEC+ gathering successful which it was asked to hold the cuts by a month.

"The Kingdom clarified done its continuous consultations with the U.S. medication that each economical analyses bespeak that postponing the OPEC+ determination for a month, according to what has been suggested would person had antagonistic economical consequences," the Saudi overseas ministry connection said.

The United States accused Saudi Arabia of kowtowing to Moscow, which objects to a Western headdress connected the terms of Russian lipid successful effect to its penetration of Ukraine.

"We presented Saudi Arabia with investigation to amusement that determination was nary marketplace ground to chopped accumulation targets, and that they could easy hold for the adjacent OPEC gathering to spot however things developed," said White House spokesperson Jack Kirby, successful a statement, which added that different OPEC nations told the United States that they felt "coerced" to enactment the Saudi decision.

The Saudi overseas ministry statement, quoting an unnamed official, stressed the "purely economical context" of the lipid cut. Oil request has weakened worldwide, with OPEC, the U.S. Energy Department, and the International Energy Agency each lowering forecasts for 2023 request this week.

However, the IEA connected Thursday added that OPEC's determination could worsen demand, saying "higher lipid prices whitethorn beryllium the tipping constituent for a planetary system already connected the brink of recession."

The Saudi connection said the kingdom views its narration with the United States arsenic a "strategic one" and stressed the value of communal respect. The Gulf Cooperation Council (GCC) issued a connection successful enactment of Saudi Arabia's comments praising the kingdom's efforts to support the marketplace from volatility.

In probe past week, Goldman Sachs said successful the past 25 years OPEC has ne'er chopped accumulation erstwhile inventories successful Organization for Economic Co-operation and Development countries - composed of 38 of the world's richest economies - were truthful low. OECD stocks are presently 8% beneath their five-year average. However, they noted that OPEC reduced output during periods of anemic demand.

Reporting by Ahmad Elhamy, Moaz Abd-Alaziz and Maha El Dahan; Editing by Jacqueline Wong, Tom Hogue, Jane Merriman and Marguerita Choy

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