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After a trip to Saudi Arabia, Joe Biden predicts higher levels of the country’s oil exports

BusinessAfter a trip to Saudi Arabia, Joe Biden predicts higher levels of the country's oil exports

Biden said he anticipated Saudi Arabia to take “additional efforts” to raise the supply of oil in the “coming weeks” after visiting Crown Prince Mohammed bin Salman in Jeddah.

After the meeting, President Biden claimed he was doing “everything I can” to raise oil supply and that he was certain he would succeed. After today’s meeting with the Saudis, I anticipate further action in the coming weeks. Saudi Arabia shares our sense of urgency.

After “a few of weeks,” he said, Americans would see the consequences of his trip to the oil-rich kingdom at the pump.

According to an official from the monarchy, output would be determined on demand, notwithstanding what the summit had said.

Minister of Foreign Affairs Adel al-Jubeir remarked, “Oil is not a political weapon, oil is not a tank.” A gun is not something you can aim and shoot.” As previously stated, “oil is a product.”

According to him, the kingdom has raised production at different points this year depending on demand and would continue to do so. If you ask, “Did we promise more oil?” it suggests that there is a scarcity of oil, he said. “Oil production will increase if there is a scarcity.”

Prices rose somewhat on Friday because of President Trump’s comments, which did not reveal if Saudi Arabia had agreed to an additional supply increase beyond what was originally scheduled.

In late afternoon trading in New York, international benchmark Brent traded at gasoline above $101 a barrel, while US benchmark West Texas Intermediate increased to $97.60.

An agreement reached by the Organization of the Petroleum Exporting Countries (OPEC) last month to speed up production increases in July and August has been implemented. Saudi Arabia and other members of Opec are scheduled to meet in early August to discuss possible modifications to output limitations.

Bob McNally, a former Bush White House consultant and CEO of Rapidan Energy Group, said the chances of a production boost from this trip were “always limited.” Although markets remain tight, the government still expects Saudi Arabia and the Emiratis to raise output in the second half of the year, he added. “However, nothing is certain.”

In spite of his prior vows to make Saudi Arabia a “pariah” after the murder of Jamal Khashoggi, Biden travelled to the country with US gasoline prices reaching record highs.

Advisers have played down Biden’s prospects of getting particular oil deals during the trip, but they have signalled that Biden’s trip will pay dividends down the road.

Hatice Cengiz, the fiancée of journalist Jamal Khashoggi, reacted angrily to President Trump’s fist bump with Crown Prince Mohammed upon his arrival in Jeddah on Friday night.

Imagining what Khashoggi might tweet if he could, she wrote: “Hey @POTUS, what’s up?” Is this the punishment you promised for my death? It’s your responsibility to bear the burden of MBS’s next victim.”

President Joe Biden claimed he brought up the assassination of journalist Jamal Khashoggi at the “beginning of the conversation” with Prince Mohammed, as well as human rights issues.

Prince Mohammed stated that “he was not directly responsible” for the assassination, according to Biden’s recollection of their discussion at the time. “I said I think he was,” he continued.

Saudi authorities stated the discussion on human rights and Khashoggi was brief. The Saudi ambassador to the United States, Princess Reema bint Bandar, reported that Prince Mohammed assured President Biden that “the persons who were directly responsible… have been tried”.

When it comes to oil production, Biden is especially concerned about lowering energy costs caused by Russia’s invasion of Ukraine, despite his aides’ claims that the visit is aimed at strengthening Israel’s regional integration and increasing American involvement in the area.

Human rights organisations have blasted the president’s visit, but he has played down his discussions with Saudi officials, claiming he was attending a gathering to promote peace.

To react to Cengiz, Biden stated, “I didn’t come here to meet with the Crown Prince. This is where I’ve come to talk about the safety and well-being of free countries everywhere, but especially the United States.”

As a sign of reversal and understanding that he must deal with Saudi Crown Prince Mohammed, who may control the country for decades, his attendance in Riyadh is welcomed by many.

Biden was greeted by the regional governor of Jeddah upon his arrival at the city’s airport, according to Saudi authorities. To be sure, it wasn’t as boisterous as when former President Donald Trump visited in 2017.

He said that Saudi Arabia and Israel had agreed to the transfer of multinational peacekeeping soldiers stationed on two Red Sea islands, which Egypt had handed to Saudi Arabia in 2017, enabling Riyadh to resume sovereignty of the region.

Before Biden came, Riyadh stated that it would open its airspace to all Israeli planes, a measure that Biden had agreed to in return for the agreement that was reached.

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