Wall Street Journal: Saudi Arabia to Increase Oil Production Next Year to Attract U.S. Congress Attention

The Wall Street Journal reported on Friday that Saudi Arabia announced it is willing to increase its oil production early next year if oil prices remain high. This move can be seen as a sign of a shift in Saudi foreign policy, which had previously strained relations with the Biden administration by rejecting its request to lower oil prices. According to the Wall Street Journal, this action by Saudi Arabia is in exchange for obtaining a 'joint military pact' with the U.S. This pact could include 'U.S. nuclear assistance', 'arms sales', and 'support for Saudi Arabia's civilian nuclear program'. The agreement may also involve Saudi Arabia 'recognizing Israel', which could lead to significant geopolitical changes in the Middle East. For instance, this agreement could help limit the military ambitions of the Islamic Republic of Iran and counter China's influence. The Biden administration needs Congressional support for this agreement. Therefore, the administration is considering a 'joint defense pact' and selling billions of dollars in arms to Saudi Arabia. Recently, oil prices have risen significantly, with Brent crude reaching $95 per barrel. This price increase has pressured Saudi Arabia to boost its oil production. On the other hand, any increase in oil production by Saudi Arabia complicates its alliance with Russia in OPEC+. The Biden administration aims to finalize the normalization of relations between Saudi Arabia and Israel within the next six months by advancing ongoing negotiations and focusing on 'the details of this agreement'. However, concerns about Saudi Arabia's human rights record continue. White House officials have urged Saudi Arabia to improve its 'image' in Washington, where the 'U.S. Congress' plays a crucial role in approving such diplomatic agreements. This article is based on a report from the Wall Street Journal. Oil is on the verge of reaching $100; OPEC+ maintains its current production strategy. Brent crude oil prices have reached their highest level in 2023 due to a significant decrease in U.S. inventories. Reuters: Despite U.S. sanctions, China has increased its oil purchases from Iran. Reuters: Iran's oil production has increased. Kuwait will officially exploit the Al-Durra (Arash) gas field by 2029. Riyadh's reliance on oil revenues is decreasing; the IMF states that Saudi Arabia's non-oil sector is growing.