President Joe Biden’s (D) administration has repeatedly claimed, including as recently as today, that the trip the president took to Saudi Arabia over the summer had nothing to do with oil.
However, a new report from The New York Times outlined a “secret deal” that the administration had with the kingdom, which Saudi Arabia later turned on.
Biden officials began meeting with the Saudis in the spring and allegedly secured a “private oil deal” in which the kingdom would get the OPEC oil cartel to increase their output of oil by 400,000 barrels per day starting in July instead of the previously planned September.
The officials then believed that they had gotten the kingdom to agree to increasing production by an additional 200,000 barrels per day starting in September and lasting the rest of the year.
OPEC announced on June 2 the administration’s desired action for an accelerated timeline of the additional 400,000 barrels per day. That same day, Biden announced that he was making a trip to Saudi Arabia.
When Biden got to Jeddah, Saudi Arabia, on July 15, the price of oil was starting to come down.
When he met with Crown Prince Mohammed bin Salman, the country’s day-to-day leader, the Saudis presented the administration with charts that showed that the price of oil had fallen and promised that they would increase oil production to a staggering 11 million barrels per day, which the report noted the country “had reached for only a few months in total over the past several years.”
Biden’s team thought they secured the deal, but Saudi officials were privately telling others that they had no plans to go through with it.
The report noted that the first warning came in August when OPEC announced only a 100,000 barrel increase in oil production, half of what was expected. Several weeks later, OPEC announced it was cutting the 100,000 barrel increase.
The administration then learned that the kingdom was going to cut production and they desperately tried to stop them, but nothing worked.
Read the full story here.
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