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    Democrat senators call for a freeze on arms sales to Saudi Arabia amid oil production cuts – video

    Two Democrat senators have called for a freeze on arms sales to Saudi Arabia unless it reverses a Riyadh-led Opec+ decision to cut oil production. They said the decision to reduce production would help Russia’s war in Ukraine. 
    ‘The only apparent purpose of this cut in oil supplies is to help the Russians and harm Americans. It was unprovoked and unforced, as an error,’ the Connecticut senator, Richard Blumenthal, said. His statement was echoed by his Democrat colleague from California, Ro Khanna, who said: ‘When Americans are facing a crisis because of Putin, when we’re paying more at the pump, our ally, someone who we have helped for decades, should be trying to help the American people.’
    The Biden administration said it was reviewing its ties with the Gulf kingdom. 
    Speaking to CNN, however, a Saudi minister, Adel al-Jubeir, said: ‘Saudi Arabia does not politicise oil. We don’t see oil as a weapon. We see oil as our commodity. Our objective is to bring stability to the oil market.’ Riyadh is not partnering with Russia, he added

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    For the love of cars: will steep gas prices stall Democrats’ midterm hopes?

    For the love of cars: will steep gas prices stall Democrats’ midterm hopes? Economy in focus: America has a love affair with cars – but soaring prices are causing a rift. In the midwest, Adam Gabbatt asks voters what they thinkThe Henry Ford museum, in Dearborn, Michigan, is a tribute to America’s obsession with the motor vehicle.The sprawling complex, set across 12 acres, is home to early examples of the Ford Model T, the mass-produced, affordable vehicle that set the US on the path of a car-dominant culture, as well as other era-defining vehicles right up to today.US midterms 2022: the key racesRead moreWalking past these cars, it is possible to trace the history of the car in the US. With the occasional exception, that history has been: let’s make more cars, and let’s make them gigantic. The tiny Model T – early versions were about 11ft long – was replaced by cars like the Chevrolet Bel Air in the 1950s, and the Cadillac Coupe deVille of the 1960s, leading to the gigantic trucks and SUVs that are bestsellers in the US today.With gas prices recently soaring, however, many Americans are now suffering as a result of that thirst for size. It’s a problem for people across the country, and with key midterm elections looming next month, the historic spike in the cost of fuel will be one of the issues that determines how the US votes.Republicans have hammered Joe Biden and the Democratic party over the increase, despite the cost being tied to issues, including Russia’s invasion of Ukraine, that are largely outside the government’s control. Prices have slowly declined in recent months, but news that Opec+, the global oil production cartel, will reduce daily production by 2m barrels, has rocked the Biden administration, weeks before the vote.That has provided Republicans with another opening to attack Democrats over gas prices, inflation and general cost of living. But outside the Henry Ford museum, the more than $120m the party has spent on ads related to inflation mostly didn’t seem to have had an impact – so far.“I truly believe that some of the higher prices that we’re paying right now is the price of freedom. I mean, you know, you don’t want to give in to all the dictators all over the world and you want to live in a free world, you have to make some compromises,” said Louis Sommer.“I’m willing to pay $6 a gallon or $10 a gallon if that’s what it takes to live in a free world.”Sommer, 39, drives a Ford Edge, which averages 22mpg, and also has an old Ford pickup truck, which guzzles about 14mpg. With prices hovering at just over $4 a gallon in this part of Michigan, those cars cost a lot of money to run.Despite not classifying himself as a Democrat – “If I would vote right now, I would probably vote Libertarian,” Sommer said – he supports Biden’s efforts on foreign policy, and had not been swayed by the Republican rhetoric. As for driving, Sommer, who works in the auto industry, said he had considered buying an electric car, but believes they are too expensive.“An electric car, as a second car, would make a lot of sense,” he said.“But right now, the electric cars are $50,000-$60,000. For a second car, it should be more like, you know, $20,000-$30,000. And you know, the infrastructure is not there in the neighborhood that I’m living in.”Gas prices in the US peaked, according to the Energy Information Administration, in June 2022, at an average of about $5 a gallon, compared with $2.42 in January 2021. Costs surged first as people returned to the roads post-Covid, and then again after Russia invaded Ukraine in February. By this September, prices had dropped to an average nationwide of $3.77, but the Opec+ news has not been kind: in the past two weeks prices have risen again to almost $4 a gallon.In a country where, outside a handful of cities, there is hardly a thriving public transit system, the cost of gas has always been a key issue, and a uniquely visible one: with prices displayed in neon letters at every gas station, to go for a drive is to witness multiple adverts for inflation.The increases are also more noticeable than the parallel spikes the country is experiencing with groceries as most people pay for gas on its own, rather than bundling it with other items.In Ohio, south of Michigan, the higher prices are being keenly felt, particularly in smaller, rural towns where grocery stores and doctor’s offices are frequently a long drive away.Ohio’s economy boomed through coal, oil and iron ore mining before the state switched to manufacturing cars, rubber and steel in the mid-1900s. By the 1980s those trades had moved abroad, and like much of the midwest, Ohio has suffered from a lack of well-paying jobs.In the town of Bucryus, which is ​​home to the annual Bucyrus bratwurst festival, and calls itself the bratwurst capital of America, gas was selling at $3.95 a gallon in early October, and local people are being forced to adapt.“I’ve been doing less traveling and just generally doing less stuff,” said Ned Ohl, who works at the Crazy Fox Saloon. “Everything just takes a little more money than I would have normally spent.”Ohl, 33, is a history buff, and had planned a trip this summer to the Waverly Hills sanatorium, a Tudor gothic former tuberculosis hospital in Louisville, Kentucky. He postponed the trip indefinitely as he couldn’t afford the gas.As for who is to blame, Ohl said: “I try not to get into the politics of it.”Kim King, who was in the bar celebrating the finalization of her divorce, said she had also been affected.“Nobody’s traveling,” King said. “I drive my daughter to volleyball and softball, but I don’t do anything outside of that. I’m not about to take a road trip anywhere.”Bucryus was among the towns to benefit from the rise of the motor vehicle. For decades Route 30, which runs across the US from New York City to San Francisco, ran right through the center of Bucyrus, and the town had a boom period during the prohibition era, when bootleggers used underground tunnels to hide and transport their wares. A speakeasy bar underneath the Crazy Fox Saloon, allegedly frequented by Al Capone, still exists today, but only as a little-visited tourist attraction.There was no sign of mob activity in the Crazy Fox, where bar patron Mike, who declined to give his last name, was more than happy to link gas prices to politics.“It went up right after that dumb-ass president stopped the pipeline,” Mike said. He was referring to Biden, and the planned Keystone XL pipeline, which would have carried oil from Canada to Texas. Biden revoked the permit for the pipeline on his first day in office. Politifact and other factcheckers have found no connection between the cancellation of the pipeline and the increase in gas prices.Nevertheless, Mike, who manages a hotel next to the Crazy Fox Saloon, was set in his opinion: “I think we could have put a puppet in and done a better job,”Mike said his car use had been affected.“​​I don’t go anywhere other than to the grocery store,” he said.“I go to Marion [a town 20 miles south of Bucyrus] once every other week to pick up my son; other than that it costs too damn much to run a vehicle right now.”Mike said his son stays with him every other weekend. They used to take trips out to Lake Erie, but: “You can’t do that any more.”Americans tend to drive larger cars than people in other countries do. So far in 2022 the three top-selling vehicles in the US are all pickup trucks – the Ford F-Series takes top spot – and the majority of the rest are SUVs. The bestselling car in the UK is the Vauxhall Corsa, a compact car that is four feet shorter than the smallest of Ford’s F-Series vehicles. The bestselling cars in France, Italy and Germany are all tiny compared with American vehicles.Bigger cars need bigger engines, and more fuel. The Corsa, according to its stats, will average 45.6mpg in the city. The most economical of the Ford F-Series vehicles will burn through 25mpg.It wasn’t always the case. The Henry Ford museum documents a move in the US toward smaller cars in the 1970s, triggered in part by spikes in gas prices, while the New York Times reported in 1973 that the rush “toward smaller, less extravagant cars” had left Ford, Chrysler and GM scrambling to switch up assembly lines.The museum also offers a glimpse into a time when the government was more willing to clamp down on car use.In 1974 Richard Nixon signed into law a 55mph speed limit on all national highways, after Opec caused a gas price spike when it stopped shipping oil to the US. The new speed limit was designed to conserve gas. Thirty years earlier, during the second world war, the US had introduced another effort to encourage people to carpool to save fuel for the war effort, with one public awareness poster in the Henry Ford museum telling Americans: “When you ride ALONE you ride with Hitler!”Driving south-east into Ohio – and not with Hitler – the flat, open landscape gave way to thick woods and rolling hills, marking the beginnings of the Appalachian mountains. This part of the state is not doing well financially. The small rural towns that dot Morgan county are pockmarked by closed storefronts and buildings with flaking paint. After decades of decline, as industry left, frequently the only businesses still active are car-related: repair shops, gas stations and the occasional car dealership.That the auto industry is the only thriving trade speaks to the reliance people here have on their cars. There’s no public transport, and frequently people have to drive miles to stores like Family Dollar, Dollar General or Kroger for groceries or essentials.In Stockport, a town of about 500 people on the Muskingum River, CJ’s Family Restaurant is one of the most popular eateries. Carolyn Schramm, 78, has owned the restaurant, which offers diner-style breakfasts and coffee, and more substantial dinner options such as an $8.25 sirloin steak and $6.80 spaghetti with meat sauce, for 35 years.The price of food has gone up this year, and with the rise in gas prices so has the price of traveling to buy supplies.“I need to put prices up,” Schramm said. “But I haven’t done it yet.”It’s difficult in a restaurant where Schramm said “customers become your family”. Some people come to CJ’s two or three times a day to eat, and in a town where the median household income is $34,338 – that figure for the US as a whole is $67,521 – many people are not flush with cash.“There’s one couple I know they say they have to be careful how much they come.”Schramm was wearing a T-shirt that said “Proud grandma of a 2020 senior”, in recognition of her granddaughter, who graduated from Morgan high school two years ago. She said gas prices had “made a big difference” for her children and grandchildren, who all live an hour’s drive away.“So far they haven’t had to come less; fortunately my kids have pretty good jobs, but you never know from one day to the next,” she said.Despite the spike, it won’t affect how, or whether, Schramm votes in November. She doesn’t blame the government for the increase, but said: “I don’t get in much on politics because frankly I think they’re all crooks.”The road from Stockport to the Pennsylvania border is quite wiggly, the rapid ascending and descending placing stress on both vehicle and stomach. Washington, a town of 13,000 people that lies 10 miles across the border, had the cheapest gas prices yet, with Sam’s Club offering it at $3.71 a gallon.On one of Washington’s main streets Tyler Weller, 21, had just finished work. He works as a traffic controller at a construction site, and is able to walk to work, but he knows a lot of people who have struggled more to cope with gas prices.“We don’t have a lot of public transport in this town, it’s kinda small. So some of my friends have been borrowing money just to drive to work,” he said. “The grocery store, you can push it off or whatever, but you have to get to work.”Weller said he is thankful he gets paid weekly – he earns $15 an hour – as he hasn’t had to worry as much about filling up his car. But he has still had to make sacrifices.“Usually I just like driving around, like a decompression ride,” he said. “I’ve had to drop those.”Others, like Weller, drive to relax, and it could be that there are impacts on people’s mental health as they are unable to turn to traditional forms of release. Weller said while he had noticed prices had gone down, they weren’t low enough for him to run his car the way he used to. And at the Luxury Box restaurant in Washington, a woman who gave her name as Kath said people celebrating cheaper gas have a short memory.“I think people are naive when they see the prices drop – they get excited, and that’s not exactly where they should be – even though it’s a little better on our wallets,” Kath said.“They notice the prices are better, they think they’re saving money, but in actuality we’re not, compared to where we were when it used to be $2.50-something.”Kath believed Biden and the Democrats could have done more to prevent the increase in prices, although she didn’t have specifics.“I think there’s a lot behind the scenes that we don’t know,” she said.As for how she was faring financially, Kath echoed a sense of hopelessness that others had exhibited across Michigan, Ohio and Pennsylvania.“It’s just not the gas prices. At this point it’s the whole economy. Our food prices are outrageous. There are increases on everything – other than how much you get paid,” Kath said.“I make very decent money for myself, but I feel like I’m now making minimum wage, and I haven’t felt like that in years.”TopicsUS midterm elections 2022GasInflationAutomotive industryJoe BidenUS economyUS politicsfeaturesReuse this content More

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    Democrats issue fresh ultimatum to Saudi Arabia over oil production

    Democrats issue fresh ultimatum to Saudi Arabia over oil productionMembers of Congress raise prospect of one-year sales ban unless kingdom reverses Opec+ decision to cut output Democrats in the US Congress have issued a fresh ultimatum to Saudi Arabia, giving the kingdom weeks to reverse an Opec+ decision to roll back oil production or face a potential one-year freeze on all arms sales.The threat came as Joe Biden reiterated his pledge to take action over Riyadh’s decision last week to cut oil output by 2m barrels a day, which Democrats have said would help “fuel Vladimir Putin’s war machine” and hurt American consumers at the petrol pump.The White House national security adviser, Jake Sullivan, told reporters the US president was also looking at a possible halt in arms sales as part of a broader re-evaluation of the US relationship with Saudi Arabia, but that no move was imminent.On Capitol Hill, anger with the Saudi move was far more palpable, as was the desire for swift and specific retribution for what has been seen as a stunning blunder by a key ally in the Middle East.The tensions with Washington and vow to “rebalance” relations between the two countries could have ripple effects far beyond petrol prices, from determining the future of an apparent emerging alliance between Russia and the Saudi heir, negotiations over Iran, and Moscow’s financial strength in its continuing assault on Ukraine.Some analysts have pointed out that Crown Prince Mohammed bin Salman might have been seeking to tip the scales of next month’s critical midterm elections in Republicans’ favour, but Democrats downplayed the allegation that Riyadh was seeking to interfere in the polls.Instead, Democratic lawmakers emphasised that Prince Mohammed’s move bolstered Russia and would ultimately harm all US consumers in what they said was a brash betrayal after decades of support from Washington.“We provide so much not just in weapons, but in defence, cooperation and joint defence initiatives to the Saudis. They get almost 73% of their arms from the United States,” said Ro Khanna, a Democratic congressman from California and longtime critic of the kingdom.“If it weren’t for our technicians, their airplanes literally wouldn’t fly … we literally are responsible for their entire air force.“What galls so many of us in Congress in the ingratitude.”Richard Blumenthal, the Democratic senator from Connecticut who is working with Khanna on the proposed legislation to cut sales, also pointed to broader security concerns.“We are selling highly sensitive technology, advanced technology, to a country that has aligned itself with an adversary – Russia – that is committing terrorist war crimes in Ukraine,” he said. “So there’s a moral imperative, but also a national security imperative.”He pointed specifically to sales of Patriot and anti-missile systems, air-to-air missiles, advanced helicopters, jet fighters, radar and air defences.“These continued sales pose a national security threat, and I am hopeful that the president will act immediately … and exercise his power on those sales,” he said.Blumenthal also suggested his proposed legislation was serving as a stick to prod Riyadh into action.“We hope that this legislation will provide an impetus for the Saudis to reconsider this and reverse,” he said. “There’s still time. The oil supply cuts don’t take effect until November.”If the Saudis did not reverse course, Blumenthal suggested the impact of defence cuts on US jobs and companies would be negligible.Any decision would likely have a ripple effect among other allies, including the UK and France, who are significant defence suppliers to Saudi Arabia.“There are issues of interoperability, of different weapon systems,” Blumenthal said. A freeze in US sales “will have an effect that could be supplemented by decisions by other countries. Certainly. They’re impacted by the economic effects of … oil supply cuts. They will make their own decisions … our allies like the UK and France may wish to join.”There was little evidence that tensions with Washington were having an effect on Prince Mohammed. A Saudi decree on Wednesday appointed an official alleged to have been involved in the cover-up of the murder of Jamal Khashoggi, the Washington Post columnist who was murdered by Saudi agents, as the president of the country’s counter-terrorism court.Dawn, a human rights group founded by Khashoggi, said the kingdom had also appointed other detectives and prosecutors who are loyal to the crown prince to serve as judges in the court.The appointments followed the arrest and removal of at least nine prominent judges by the State Security Agency in April, the group said..It is not clear whether the Democrats would be able to garner enough Republican support to pass legislation once Congress is back in session next month, but Blumenthal said he had reached out to Republican colleagues who were “receptive” and “favourable in remarks that there need to be consequences” for Saudi actions.The comments underscore that, while the his administration will ultimately determine the US stance on Saudi Arabia, Biden is facing considerable pressure from allies in Congress to move beyond rhetoric and take a tougher stance against the kingdom.Robert Menendez, the Democratic chair of the Senate foreign relations committee, suggested in an interview on MSNBC on Wednesday that Saudi Arabia had little choice but to re-evaluate its Opec+ decision if it wanted to maintain its security against regional foes.“Who are they going to rely upon to have greater security from Iran, which is an existential threat, than the United States? Russia? Russia’s in bed with Iran,” he said.“The bottom line is, Russia is not the bulwark against Iran … they have to understand that their actions have consequences.”TopicsUS foreign policyUS CongressOpecSaudi ArabiaMiddle East and north AfricaUS politicsDemocratsnewsReuse this content More

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    How the pound is performing against other currencies

    For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails The pound has fallen again in the aftermath of chancellor Kwasi Kwarteng’s “mini-Budget” in September. The latest drop, which saw £1 sterling buy $1.10, came after Andrew Bailey, […] More

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    How the pound is performing against other currencies?

    For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails The pound has fallen again in the aftermath of chancellor Kwasi Kwarteng’s “mini-Budget” in September. The latest drop, which saw £1 sterling buy $1.10, came after Andrew Bailey, […] More

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    Bank of England should extend emergency action, says pensions industry body

    For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails The Bank of England’s emergency action may need to be extended beyond this week to help manage market turmoil, according to a leading pensions industry body. The Pensions and Lifetime Savings Association (PLSA) said a […] More