<\/span><\/h2>\n\n\n\nDespite the potential risks to the bilateral relationship, the recent production cut demonstrates Prince Mohammed’s willingness to pursue a nationalist energy policy aimed at funding the kingdom’s transformation. According to Farouk Soussa, Middle East and North Africa economist at Goldman Sachs, Saudi Arabia is less inclined to subordinate its own economic interests to support those of the U.S. than they have been historically.<\/p>\n\n\n\n
The move also highlights growing uncertainty about the U.S. commitment to defend its Middle Eastern allies amid increased great-power competition in the region. As a result, Prince Mohammed is giving priority to national interests and pursuing a more assertive foreign policy in order to protect Saudi Arabia’s economic and strategic interests.<\/p>\n\n\n\n
This is not the first time that Saudi Arabia has clashed with the US, in pursuit of its own interests. In 2018, the murder of journalist Jamal Khashoggi at the Saudi consulate in Istanbul strained relations between the two countries, with many in the U.S. calling for a tougher stance against Saudi Arabia. However, the Trump administration maintained its support for the kingdom, citing its strategic importance and the need to counter Iran’s influence in the region.<\/p>\n\n\n\n
Under President Biden, the US-Saudi relationship has become increasingly strained, as the administration has sought to distance itself from the previous administration’s close ties to the kingdom. <\/p>\n\n\n\n
The Crown Prince’s economic plan, Vision 2030, is aimed at diversifying the economy away from its dependence on oil exports. <\/p>\n\n\n\n
The plan includes developing new industries, building tourist destinations, and creating entertainment options for Saudi citizens. This ambitious plan requires significant investment, and the Crown Prince has been seeking foreign investment to fund these projects. However, with the recent decline in oil prices, foreign investment has been slow to materialize, prompting the Crown Prince to look to other sources of revenue.<\/p>\n\n\n\n
The recent production cuts are just one part of the Crown Prince’s nationalist energy policy aimed at funding the country’s transformation. The move has significant political ramifications and could add to Riyadh’s already significant tensions with Washington. Saudi Arabia, once a reliable U.S. security partner, has been setting energy policy at odds with Washington for more than a year, as the West confronts Russia over its invasion of Ukraine.<\/p>\n\n\n\n
The U.S. has sought to reduce revenue for Russia, one of the biggest oil and gas producers in the world, through sanctions and a price cap, but moves by Saudi-led OPEC and another group of producers led by Russia helped prop up crude prices in much of 2022. The cuts in October, a few months after President Biden’s trip to Saudi Arabia to heal relations and just before congressional elections, ratcheted up tensions with the White House, which eventually backed off threats of retaliation against Riyadh.<\/p>\n\n\n\n
<\/span>“Saudi First”<\/span><\/h2>\n\n\n\nThe recent production cuts are a clear signal that the Saudis will do whatever it takes to keep oil prices at levels that benefit them. Prince Mohammed is implementing what analysts label a “Saudi First” economic policy aimed at giving priority to national interests at a time of growing uncertainty about the U.S. commitment to defend its Middle Eastern allies amid increased great-power competition in the region.<\/p>\n\n\n\n
The production cut will hit an oil market that was widely seen as tightly balanced between supply and demand. It’s likely that the move will push oil prices higher in the short term, which will benefit Saudi Arabia’s oil revenues. However, it remains to be seen how the move will impact the global oil market in the long term.<\/p>\n\n\n\n
Some analysts have raised concerns that the production cuts could lead to a shortage of oil supply in the global market, which could push oil prices even higher. This, in turn, could lead to higher inflation and put pressure on the global economy, which is already struggling with the impact of the COVID-19 pandemic. <\/p>\n\n\n\n
On the other hand, others argue that the global oil market is oversupplied, and the production cuts will help bring supply and demand into balance, which could benefit the global economy in the long term.<\/p>\n\n\n\n
<\/span>Long term impacts remain to be seen<\/span><\/h2>\n\n\n\nSaudi Arabia is one of the world’s largest oil producers, and its energy policy has significant implications for the global oil market. The recent production cuts demonstrate the country’s willingness to put its own economic interests ahead of its relationship with the United States. While the move is likely to benefit the country’s economy in the short term, it remains to be seen how it will impact the global oil market and the world economy in the long term.<\/p>\n\n\n\n
The Crown Prince’s economic plan, Vision 2030, is an ambitious and far-reaching plan aimed at transforming the Saudi Arabian economy. The plan requires significant investment, and the recent decline in oil prices has made it difficult to attract the foreign investment necessary to fund the plan. The recent production cuts are just one part of the Crown Prince’s nationalist energy policy aimed at funding the country’s transformation.<\/p>\n\n\n\n
The recent production cuts by Saudi Arabia and its allies demonstrate the country’s willingness to pursue a nationalist energy policy aimed at funding an expensive makeover of the kingdom. The move is a clear signal that the Saudis will do whatever it takes to keep oil prices at levels that benefit the country. <\/p>\n\n\n\n
It also recently reportedly repaired its relations with Iran, which signals possible end to decades long rival ry between two countries. <\/p>\n","protected":false},"excerpt":{"rendered":"
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