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    Biden to ‘Re-Evaluate’ Relationship With Saudi Arabia After Oil Production Cut

    Angered by the kingdom’s decision to team up with Russia to slash petroleum output, the president signaled openness to retaliatory measures proposed in Congress, including a halt to arms sales and a new antitrust measure.President Biden is re-evaluating the relationship with Saudi Arabia after it teamed up with Russia to cut oil production in a move that bolstered President Vladimir V. Putin’s government and could raise American gasoline prices just before midterm elections, a White House official said on Tuesday.“I think the president’s been very clear that this is a relationship that we need to continue to re-evaluate, that we need to be willing to revisit,” the official, John F. Kirby, the strategic communications coordinator for the National Security Council at the White House, said on CNN. “And certainly in light of the OPEC decision, I think that’s where he is.”Mr. Kirby signaled openness to retaliatory measures proposed by Democratic congressional leaders outraged by the oil production cut announced last week by the international cartel known as OPEC Plus. Among other things, leading Democrats have proposed curbing American security cooperation with Saudi Arabia, including arms sales, and stripping OPEC members of their legal immunity so they can be sued for violations of American antitrust laws.“The president’s obviously disappointed by the OPEC decision and is going to be willing to work with Congress as we think about what the right relationship with Saudi Arabia needs to be going forward,” Mr. Kirby said. He sounded a note of urgency. “The timeline’s now and I think he’s going to be willing to start to have those conversations right away,” he said. “I don’t think this is anything that’s going to have to wait or should wait quite frankly for much longer.”The comments came just a day after Senator Bob Menendez, Democrat of New Jersey and chairman of the Senate Foreign Relations Committee, assailed Saudi Arabia for effectively backing Russia in its brutal invasion of Ukraine and called for an immediate freeze on “all aspects of our cooperation with Saudi Arabia,” vowing to use his power to block any future arms sales.The Biden PresidencyWith midterm elections approaching, here’s where President Biden stands.Diplomatic Limits: OPEC’s decision to curb oil production has exposed the failure of President Biden’s fist-bump diplomacy with the crown prince of Saudi Arabia.Defending Democracy: Mr. Biden’s drive to buttress democracy at home and abroad has taken on more urgency by the persistent power of China, Russia and former President Donald J. Trump.A Tricky Message: Even as he condemns Trumpism, Mr. Biden has taken pains to show that he understands that not all Republicans are what he calls extremist “MAGA Republicans.”Questions About 2024: Mr. Biden has said he plans to run for a second term, but at 79, his age has become an uncomfortable issue.“There simply is no room to play both sides of this conflict — either you support the rest of the free world in trying to stop a war criminal from violently wiping off an entire country off of the map, or you support him,” Mr. Menendez said. “The Kingdom of Saudi Arabia chose the latter in a terrible decision driven by economic self-interest.”Senator Dick Durbin of Illinois, the second-ranking Democrat in the Senate, said on Tuesday morning that Saudi Arabia clearly wanted Russia to win the war in Ukraine. “Let’s be very candid about this,” he said on CNN. “It’s Putin and Saudi Arabia against the United States.”.css-1v2n82w{max-width:600px;width:calc(100% – 40px);margin-top:20px;margin-bottom:25px;height:auto;margin-left:auto;margin-right:auto;font-family:nyt-franklin;color:var(–color-content-secondary,#363636);}@media only screen and (max-width:480px){.css-1v2n82w{margin-left:20px;margin-right:20px;}}@media only screen and (min-width:1024px){.css-1v2n82w{width:600px;}}.css-161d8zr{width:40px;margin-bottom:18px;text-align:left;margin-left:0;color:var(–color-content-primary,#121212);border:1px solid var(–color-content-primary,#121212);}@media only screen and (max-width:480px){.css-161d8zr{width:30px;margin-bottom:15px;}}.css-tjtq43{line-height:25px;}@media only screen and (max-width:480px){.css-tjtq43{line-height:24px;}}.css-x1k33h{font-family:nyt-cheltenham;font-size:19px;font-weight:700;line-height:25px;}.css-ok2gjs{font-size:17px;font-weight:300;line-height:25px;}.css-ok2gjs a{font-weight:500;color:var(–color-content-secondary,#363636);}.css-1c013uz{margin-top:18px;margin-bottom:22px;}@media only screen and (max-width:480px){.css-1c013uz{font-size:14px;margin-top:15px;margin-bottom:20px;}}.css-1c013uz a{color:var(–color-signal-editorial,#326891);-webkit-text-decoration:underline;text-decoration:underline;font-weight:500;font-size:16px;}@media only screen and (max-width:480px){.css-1c013uz a{font-size:13px;}}.css-1c013uz a:hover{-webkit-text-decoration:none;text-decoration:none;}How Times reporters cover politics. We rely on our journalists to be independent observers. So while Times staff members may vote, they are not allowed to endorse or campaign for candidates or political causes. This includes participating in marches or rallies in support of a movement or giving money to, or raising money for, any political candidate or election cause.Learn more about our process.Mr. Biden’s willingness to consider retaliatory measures represents a marked shift for a president who had sought to improve relations with Saudi Arabia in recent months and reflected deep anger in the White House about the decision last week by the Saudi-led OPEC Plus group to cut oil production by up to two million barrels a day.The president absorbed withering criticism for visiting Saudi Arabia in July and giving a fist bump to its crown prince, Mohammed bin Salman, despite a campaign promise to make the kingdom an international “pariah” for the killing of the Saudi journalist Jamal Khashoggi, a columnist for The Washington Post and a resident of the United States. The C.I.A. has determined that Prince Mohammed ordered the operation that led to the murder and dismemberment of Mr. Khashoggi in 2018.Overcoming his own reservations, Mr. Biden went along with advisers who argued that it was worth the political hit to restore ties with Saudi Arabia for a variety of reasons, including the need to bolster energy markets given the effort to isolate Russia, one of the biggest oil producers in the world. While no specific announcements were made during his visit to Jeddah in July, American officials said at the time that they had an understanding with Saudi Arabia that it would increase oil production in the fall and thus lower gasoline prices heading into the crucial congressional elections.The Saudi decision to do the opposite last week in defiance of American entreaties was a blow to Mr. Biden and opened him up to further criticism even from fellow Democrats who argued that Saudi Arabia should be punished. Three House Democrats announced legislation requiring the removal of American troops and defensive systems from Saudi Arabia and the United Arab Emirates.After falling for more than three months, gas prices are rising again, increasing by 12 cents a gallon on average over the last week to $3.92, according to AAA, although they remain far below the June peak of just over $5. The White House was counting on dropping gas prices to buttress Democratic efforts to keep control of both houses of Congress in the Nov. 8 election.The anger at Saudi Arabia in Washington was exacerbated in the last couple of days by Russia’s latest airstrikes against civilian targets across Ukraine. Democrats increasingly framed the dispute with Saudi Arabia less in terms of concern over domestic gas prices in a campaign season and more about the kingdom’s willingness to aid Mr. Putin’s aggression. More

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    Biden’s Choice After OPEC Cuts: Woo Saudi Arabia, or Retaliate?

    The announcement by the Saudi-led OPEC Plus energy cartel that it would slash oil production was widely seen in Washington as a stab in the back of President Biden.WASHINGTON — President Biden faces a dicey choice following the decision by the world’s oil giants to slash production just weeks before critical midterm elections that could turn on the price of gasoline: Should he stick with his policy of wooing Saudi Arabia or take measures to retaliate?The announcement by the Saudi-led OPEC Plus energy cartel that it would pump two million fewer barrels a day was widely seen in Washington as a stab in the back of Mr. Biden, who just three months ago jettisoned his vow to make Saudi Arabia a “pariah” and traveled there to court the kingdom’s autocratic crown prince.The question now confronting Mr. Biden is what to do about this seeming betrayal. In intentionally bland comments, he told reporters on Thursday only that he was “disappointed” and considering unspecified “alternatives.” But fellow Democrats, frustrated by what they see as the president’s excessive deference to the Saudis and eager to demonstrate toughness before their constituents head to the polls, increased pressure on Mr. Biden to punish Riyadh.“He should just start withdrawing stuff,” Representative Tom Malinowski, Democrat of New Jersey, said in an interview, referring to the American military presence in Saudi Arabia. “That would get their attention. Action for action. Call their bluff. Do they really think they can trade their American security partner for a Russian security partner or a Chinese security partner? They know they can’t do that.”Senator Chuck Schumer of New York, the majority leader, said Saudi Arabia’s decision to ally with President Vladimir V. Putin’s Russia to shore up oil prices was a grave mistake.“What Saudi Arabia did to help Putin continue to wage his despicable, vicious war against Ukraine will long be remembered by Americans,” he said. “We are looking at all the legislative tools to best deal with this appalling and deeply cynical action.”Mr. Biden gave little indication of how far he would go.Asked about the production cut on Thursday, Mr. Biden said that “we are looking at alternatives” to oil from OPEC Plus countries. “We haven’t made up our minds yet,” he said.His administration counseled caution, holding out hope that at the end of the day, the cut in daily production would in reality amount to maybe half of the two million barrel goal because some oil producers were already not meeting their targets. Rather than penalizing Saudi Arabia, Biden aides appeared focused more on countering its move by releasing more oil from the Strategic Petroleum Reserve and possibly seeking rapprochement with oil-pumping Venezuela.“We are looking at alternatives” to oil from OPEC Plus countries, President Biden said on Thursday, adding, “We haven’t made up our minds yet.”Doug Mills/The New York TimesThe administration also appeared to be considering moves to pressure domestic energy companies to reduce retail prices, possibly including limits on the export of petroleum products. “We’re not announcing any steps on that front, but there are measures that we will continue to assess,” Brian Deese, the president’s national economic adviser, told reporters.The OPEC Plus decision could hardly have come at a worse time politically for Mr. Biden, who had staked his argument for the midterm campaign in part on falling gas prices. Ron Klain, the White House chief of staff, has methodically tracked the price at the pump for months as it has declined, and Democrats felt renewed momentum as a result.The State of the 2022 Midterm ElectionsWith the primaries over, both parties are shifting their focus to the general election on Nov. 8.Standing by Herschel Walker: After a report that the G.O.P. Senate candidate in Georgia paid for a girlfriend’s abortion in 2009, Republicans rallied behind him, fearing that a break with the former football star could hurt the party’s chances to take the Senate.Democrats’ Closing Argument: Buoyed by polls that show the end of Roe v. Wade has moved independent voters their way, vulnerable House Democrats have reoriented their campaigns around abortion rights in the final weeks before the election.G.O.P. Senate Gains: After signs emerged that Republicans were making gains in the race for the Senate, the polling shift is now clear, writes Nate Cohn, The Times’s chief political analyst.Trouble for Nevada Democrats: The state has long been vital to the party’s hold on the West. Now, Democrats are facing potential losses up and down the ballot.But gas prices had already begun inching back up even before the Saudi-led move, in part because of refinery issues on the West Coast and in the Midwest. The national average rose by seven cents to $3.86 since Monday as demand increased and stocks fell, although it remained far below the peak topping $5 a gallon in June.The Saudis maintain that the production cut was not meant as a shot at Mr. Biden and have sent papers and charts to administration officials justifying it. With the price of oil falling just below $80 a barrel in recent days, the Saudis told American officials that they worried it would slide further into the $70s and possibly the $60s, making their own energy-dependent budget unsustainable..css-1v2n82w{max-width:600px;width:calc(100% – 40px);margin-top:20px;margin-bottom:25px;height:auto;margin-left:auto;margin-right:auto;font-family:nyt-franklin;color:var(–color-content-secondary,#363636);}@media only screen and (max-width:480px){.css-1v2n82w{margin-left:20px;margin-right:20px;}}@media only screen and (min-width:1024px){.css-1v2n82w{width:600px;}}.css-161d8zr{width:40px;margin-bottom:18px;text-align:left;margin-left:0;color:var(–color-content-primary,#121212);border:1px solid var(–color-content-primary,#121212);}@media only screen and (max-width:480px){.css-161d8zr{width:30px;margin-bottom:15px;}}.css-tjtq43{line-height:25px;}@media only screen and (max-width:480px){.css-tjtq43{line-height:24px;}}.css-x1k33h{font-family:nyt-cheltenham;font-size:19px;font-weight:700;line-height:25px;}.css-ok2gjs{font-size:17px;font-weight:300;line-height:25px;}.css-ok2gjs a{font-weight:500;color:var(–color-content-secondary,#363636);}.css-1c013uz{margin-top:18px;margin-bottom:22px;}@media only screen and (max-width:480px){.css-1c013uz{font-size:14px;margin-top:15px;margin-bottom:20px;}}.css-1c013uz a{color:var(–color-signal-editorial,#326891);-webkit-text-decoration:underline;text-decoration:underline;font-weight:500;font-size:16px;}@media only screen and (max-width:480px){.css-1c013uz a{font-size:13px;}}.css-1c013uz a:hover{-webkit-text-decoration:none;text-decoration:none;}How Times reporters cover politics. We rely on our journalists to be independent observers. So while Times staff members may vote, they are not allowed to endorse or campaign for candidates or political causes. This includes participating in marches or rallies in support of a movement or giving money to, or raising money for, any political candidate or election cause.Learn more about our process.Biden administration officials fear the real crisis might come in December when a price cap organized by the United States to restrict Russian oil profits goes into effect and a European Union ban on the purchase of Russian crude is set to begin.Mr. Biden’s options to counter the production cut are limited and carry trade-offs. He has already ordered more oil to be released from the Strategic Petroleum Reserve, but since the reserve is now at its lowest level in four decades, that risks shortages in case of war or a natural disaster like another hurricane.He could push to limit exports of processed fuels like gasoline and diesel, which would expand supplies and lower prices domestically. But that would harm trading partners, particularly the European allies attempting to wean themselves off Russian energy and amplify global inflationary pressures.The administration could open more federal lands and waters to drilling and soften regulations on drilling, exploration and pipeline laying to increase domestic production, although that could incite a backlash among environmentalists.“They need to loosen regulations, they need to release all those permits sitting on someone’s desk for drilling on federal lands, and they need to allow the Keystone XL pipeline to come down to deliver the Canadian oil sands to American consumers,” said Darlene Wallace, a board member of the Oklahoma Energy Producers Alliance. “And the president needs to encourage investors to invest in the oil business.”Easing sanctions on Iran and Venezuela could free up more than a million barrels of oil a day, which would help lower prices and potentially replace some of the Russian barrels now sold to Chinese and Indian refineries. But nuclear talks with Iran have stalled with scant hope of a breakthrough, and the prospects of a deal with Venezuela are murky.Prince Abdulaziz bin Salman, the Saudi energy minister, at the OPEC Plus meeting on Wednesday. The Saudis have said they are worried about further drops in oil prices making their energy-dependent budget unsustainable.Christian Bruna/EPA, via ShutterstockThe Wall Street Journal has reported that the Biden administration was preparing to scale down sanctions to allow Chevron to resume pumping in exchange for a move toward elections in 2024. But in a statement, the White House emphasized that “there are no plans to change our sanctions policy without constructive steps from the Maduro regime.”In brief comments with reporters on Thursday, Mr. Biden did not deny a possible change toward Venezuela. “There’s a lot of alternatives,” he said. “We haven’t made up our mind yet.” Asked what Venezuela would have to do to persuade the United States to ease sanctions, Mr. Biden said, “A lot.”The president defended his decision to travel in July to Saudi Arabia, where he exchanged a fist bump with its de facto ruler, Crown Prince Mohammed bin Salman, despite a campaign pledge to isolate the kingdom for the killing of Jamal Khashoggi, a Saudi journalist and United States resident killed on what the C.I.A. said were Prince Mohammed’s orders.While not formally announced, American officials said privately at the time that they had an understanding that Saudi Arabia and other energy powers would ramp up production by fall.But Mr. Biden insisted again on Thursday that he had other goals in going to Saudi Arabia, such as encouraging diplomatic relations with Israel.“The trip was not essentially for oil,” the president said. “The trip was about the Middle East and about Israel and rationalization of positions.”“But it is a disappointment,” he added about the production cut, “and it says that there are problems.”Mr. Malinowski and other Democrats said the president should go further than just expressing disappointment. He introduced a bill with Representatives Sean Casten and Susan Wild, Democrats from Illinois and Pennsylvania, requiring the removal of American troops and defensive systems from Saudi Arabia and the United Arab Emirates.The bill was more a statement than anything else since Congress is out of session until the election, but Mr. Malinowski said he patterned it after a similar measure introduced by Republicans in 2020 and used by President Donald J. Trump to pressure Saudi Arabia to decrease production at a time when low oil prices were a concern.Mr. Malinowski said Mr. Biden should similarly use the legislation to push the Saudis. “The point of our bill is to give him the ammunition he needs. I hope he uses it,” Mr. Malinowski said. “He took a risk. He put himself out there for this relationship, and this is not how a friend should respond. So maybe they should find some new friends.”Clifford Krauss More

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    Republicans Wrongly Blame Biden for Rising Gas Prices

    They have pointed to the Biden administration’s policies on the Keystone XL pipeline and certain oil and gas leases, which have had little impact on prices.WASHINGTON — As gas prices hit a high this week, top Republican lawmakers took to the airwaves and the floors of Congress with misleading claims that pinned the blame on President Biden and his energy policies.Mr. Biden warned that his ban on imports of Russian oil, gas and coal, announced on Tuesday as a response to Russia’s invasion of Ukraine, would cause gas prices to rise further. High costs are expected to last as long as the confrontation does.While Republican lawmakers supported the ban, they asserted that the pain at the pump long preceded the war in Ukraine. Gas price hikes, they said, were the result of Mr. Biden’s cancellation of the Keystone XL pipeline, the temporary halt on new drilling leases on public lands and the surrendering of “energy independence” — all incorrect assertions.Here’s a fact check of their claims.What Was Said“This administration wants to ramp up energy imports from Iran and Venezuela. That is the world’s largest state sponsor of terror and a thuggish South America dictator, respectively. They would rather buy from these people than buy from Texas, Alaska and Pennsylvania.”— Senator Mitch McConnell, Republican of Kentucky and the minority leader, in a speech on Tuesday“Democrats want to blame surging prices on Russia. But the truth is, their out-of-touch policies are why we are here in the first place. Remember what happened on Day 1 with one-party rule? The president canceled the Keystone pipeline, and then he stopped new oil and gas leases on federal lands and waters.”— Representative Kevin McCarthy, Republican of California and the minority leader, in a speech on Tuesday“In the four years of the Trump-Pence administration, we achieved energy independence for the first time in 70 years. We were a net exporter of energy. But from very early on, with killing the Keystone pipeline, taking federal lands off the list for exploration, sidelining leases for oil and natural gas — once again, before Ukraine ever happened, we saw rising gasoline prices.”— Former Vice President Mike Pence in an interview on Fox Business on TuesdayThese claims are misleading. The primary reason for rising gas prices over the past year is the coronavirus pandemic and its disruptions to global supply and demand.“Covid changed the game, not President Biden,” said Patrick De Haan, the head of petroleum analysis for GasBuddy, which tracks gasoline prices. “U.S. oil production fell in the last eight months of President Trump’s tenure. Is that his fault? No.”“The pandemic brought us to our knees,” Mr. De Haan added.In the early months of 2020, when the virus took hold, demand for oil dried up and prices plummeted, with the benchmark price for crude oil in the United States falling to negative $37.63 that April. In response, producers in the United States and around the world began decreasing output.As pandemic restrictions loosened worldwide and economies recovered, demand outpaced supply. That was “mostly attributable” to the decision by OPEC Plus, an alliance of oil-producing countries that controls about half the world’s supply, to limit increases in production, according to the U.S. Energy Information Administration. Domestic production also remains below prepandemic levels, as capital spending declined and investors remained reluctant to provide financing to the oil industry.Russia’s invasion of Ukraine has only compounded the issues.“When you throw a war on top of this, this is possibly the worst escalation you can have of this,” said Abhiram Rajendran, the head of oil market research at Energy Intelligence, an energy information company. “You’re literally pouring gasoline on general inflationary pressure.”These factors are largely out of Mr. Biden’s control, experts agreed, though they said he had not exactly sent positive signals to the oil and gas industry and its investors by vowing to reduce emissions and fossil fuel reliance.Mr. De Haan said the Biden administration was “clearly less friendly” to the industry, which may have indirectly affected investor attitudes. But overall, he said, that stance has played a “very, very small role pushing gas prices up.”President Biden announced a ban on imports of Russian oil in response to the country’s invasion of Ukraine.Tom Brenner for The New York TimesMr. Rajendran said the Biden administration had emphasized climate change issues while paying lip service to energy security.“There has been a pretty stark miscalculation of the amount of supply we would need to keep energy prices at affordable levels,” he said. “It was taken for granted. There was too much focus on the energy transition.”But presidents, Mr. Rajendran said, “have very little impact on short-term supply.”“The key relationship to watch is between companies and investors,” he said.It is true that the Biden administration is in talks with Venezuela and Iran over their oil supplies. But the administration is also urging American companies to ramp up production — to the dismay of climate change activists and contrary to Republican lawmakers’ suggestions that the White House is intent on handcuffing domestic producers.Speaking before the National Petroleum Council in December, Jennifer M. Granholm, the energy secretary, told oil companies to “please take advantage of the leases that you have, hire workers, get your rig count up.”Understand Rising Gas Prices in the U.S.Card 1 of 5A steady rise. More