IntelBrief: Saudi Energy Strategy Frustrates Washington

Bottom Line Up Front

• Saudi Arabia’s current energy strategy seeks to keep global oil price levels elevated to fund its expansive investment projects.
• Global oil prices have been rising as Saudi Arabia and other major exporters — particularly Russia – agree to extend oil production cuts, hindering global efforts to tame inflation.
• The move comes amid efforts by U.S. officials to work with Saudi Arabia’s de-facto leader Mohammad bin Salman (MBS) on several major regional issues.
• Further increases in oil prices could slow or reverse the improving relations between U.S. officials and MBS.