US President Joe Biden warns of 'consequences' for Saudi Arabia after oil production cuts

US President Joe Biden has vowed to re-evaluate relations with Riyadh. Photo / AP

Joe Biden warned Saudi Arabia would face "consequences" for defying Washington in announcing large cuts to oil production last week, as he vowed to re-evaluate the US's relationship with Riyadh in talks with Congress next month.

"I'm not going to get into what I'd consider and what I have in mind. But there will be consequences," the US president told CNN in an interview on Tuesday night. "When the House and Senate get back [after the midterm elections] . . . there's going to be some consequences for what they've done."

Biden's vow to punish Saudi Arabia for its move to cut oil production, which threatens a surge in oil prices, came as he downplayed the risk of a deep downturn in the US economy, even as the IMF issued a gloomy forecast for the global economy in 2023.

"I don't think there will be a recession," Biden said of the US. "If it is, it'll be a very slight recession. That is, we'll move down slightly."

Biden has come under increasing pressure from Democrats in Congress in recent days to take a much tougher line against Saudi Arabia after a move that many on Capitol Hill saw as a betrayal of the two countries' longstanding strategic and economic ties. Some have called for the possible halt of most arms sales to Riyadh, while others are championing legislation that would take aim at oil cartels.

In the interview, the president defended his decision to travel to Saudi Arabia in July, where he greeted Crown Prince Mohammed bin Salman with a fist bump, saying the visit was not about "oil" but about making sure America was "not going to walk away from the Middle East".

But Biden also spoke at length about Russia's war in Ukraine, which has escalated sharply in recent days with Moscow's new bombing campaign against several cities in the country in response to attack on the Kerch bridge connecting Russia to Crimea.

Biden called Vladimir Putin a "rational actor who has miscalculated significantly" and said he did not believe Russia would use nuclear weapons in Ukraine. Last week he said he feared the risk of "Armageddon" was its highest since the Cuban Missile Crisis of 1962.

The president also sought to explain what he meant last week by referring to a possible "off-ramp" for the Russian president that would allow for de-escalation: "Clearly, he could leave, he could flat-out leave."

Biden said he had no intention of meeting Putin at next month's G20 in Indonesia, but might do so if he was approached about the release of Brittney Griner, the basketball player recently jailed in Russia.

With midterm elections less than a month away he also touted his own domestic accomplishments. Biden's low approval ratings have been a liability for all Democratic lawmakers in tough Senate and House battleground races.

"Look what I've gotten done. Name me a president in recent history who has gotten as much done as I have in the first two years. Not a joke," he said. He has also facing growing questions about his viability in terms of seeking a second term in the White House. "I believe I can beat Donald Trump again," Biden said.

Written by: James Politi

© Financial Times