With the United States (US) continuing to press Saudi Arabia to end its oil price war with Russia, President Donald Trump has given the Kingdom an ultimatum.
According to Reuters, in an April 2 phone call, Trump told Saudi Crown Prince Mohammed bin Salman that unless the Organisation of the Petroleum Exporting Countries (OPEC) started cutting oil production, he would be powerless to stop lawmakers from passing legislation to withdraw US troops from the Kingdom.
The threat to upend a 75-year strategic alliance, which has not been previously reported, was central to the US pressure campaign that led to a landmark global deal to slash oil supply as demand collapsed in the coronavirus pandemic — scoring a diplomatic victory for the White House.
Trump delivered the message to the crown prince 10 days before the announcement of production cuts. The kingdom’s de facto leader was so taken aback by the threat that he ordered his aides out of the room so he could continue the discussion in private, according to a US source who was briefed on the discussion by senior administration officials.
The effort illustrated Trump’s strong desire to protect the US oil industry from a historic price meltdown as governments shut down economies worldwide to fight the virus. It also reflected a telling reversal of Trump’s longstanding criticism of the oil cartel, which he has blasted for raising energy costs for Americans with supply cuts that usually lead to higher gasoline prices.
Now, Trump was asking OPEC to slash output.
A senior US official told Reuters that the administration notified Saudi leaders that, without production cuts, “there would be no way to stop the US Congress from imposing restrictions that could lead to a withdrawal of US forces”. The official summed up the argument, made through various diplomatic channels, as telling Saudi leaders: “We are defending your industry while you’re destroying ours.”
