Saudi Arabia and UAE Refuse to Take Biden’s Calls on Oil

After declining to speak to Biden, Mohammed bin Salman took a call from President Putin SERGIO MORAES/REUTERS
THE TIMES: Joe Biden has been rebuffed by Saudi Arabia and the United Arab Emirates in his attempts to persuade them to produce more oil in the wake of a US ban on Russian imports.

Saudi Crown Prince Mohammed bin Salman and the UAE’s Sheikh Mohammed bin Zayed al Nahyan both declined requests to speak to the US president in recent weeks, officials told The Wall Street Journal, amid frosty relations with his administration.

After declining to speak to Biden, both rulers took calls from President Putin of Russia last week. They both also spoke to President Zelensky of Ukraine and a Saudi official said the US had requested that MBS, as the Saudi prince is known, mediate in the conflict. » | David Charter, Washington | Charles Bremner, Paris | Thursday, March 10, 2022

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Oil Markets Brace for Saudi 'Rage' as Global Spare Capacity Wears Thin
THE DAILY TELEGRAPH: Those exhorting OPEC to boost output should be careful what they wish for. The cartel card can be played once only, and it risks exposing the fragility of the global energy system if the Gulf powers are seen struggling to deliver.

Goldman Sachs suspects that OPEC has been pumping far above its agreed quota since November and therefore cannot easily raise output much without cutting deep into global spare capacity.

Jeff Currie, the bank's oil guru, said Saudi output had quietly crept up by 700,000 barrels a day (bpd) even before the Libyan supply shock.

Assumptions that OPEC has added 1.9m bpd over the last two years are wishful thinking. These new fields have been "largely offset" by attrition in old fields.

"We believe that OPEC spare capacity has already dropped below 2m bpd. The question therefore arises how much spare capacity is left to absorb potential supply disruptions in other countries," he said.

If this picture is broadly correct, spare capacity is already close to the wafer-thin levels that led to wild price moves in mid-2008.

The flow of Libyan oil has so far fallen by 1m bpd. This may not sound much against global supply of 88m, but oil prices are determined by levels of spare capacity once supply tightens.

Beyond a certain point, the price spiral can kick in with explosive force until the economic damage crushes demand.

Libya's conflict has already cut spare capacity by a third. Hopes for a quick solution are fading as the country succumbs to civil war along ancient lines of tribal cleavage. A raft of new projects planned for the Sirte Basin by mid-decade will be mothballed. >>> Ambrose Evans-Pritchard, International Business Editor | Tuesday, March 08, 2011

Our ‘Friends’ in the Gulf, the Saudis, Resist Pressure from Bush to Raise Oil Production
Bush, you should tell the Saudis: Raise oil production, or else! Then walk away. - ©Mark

BBC: Saudi Arabia has rejected an appeal by US President George W Bush to raise oil production, a US official has said.

Saudi officials said they were already meeting demand, and had increased production by 300,000 barrels per day earlier this month.

The news came after talks in Riyadh between Mr Bush and King Abdullah.

The US wants an increase in production to help curb record prices, currently $127 a barrel, but Saudi officials blame speculation not supply shortages.

"Supply and demand are in balance today... The fundamentals are sound," said Saudi Oil Minister Ali al-Nuaimi.

"How much more can we do?" Saudis 'Resist Bush Oil Pressure' >>> | May 16, 2008

THE GUARDIAN:
Bush Rebuffed by Saudis >>> By Haroon Siddique and agencies | May 16, 2008

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