Jordan calls for dialogue between Saudi Arabia and US to solve oil dispute

Foreign Ministry spokesman says issue 'should be approached on technical basis'

Saudi Arabia's Crown Prince Mohammed bin Salman and Jordan's King Abdullah II in Jeddah on July 16, 2022. SPA

Jordan on Tuesday called for discussions between the US and Saudi Arabia to solve the disagreement between the two countries over oil prices.

"This issue should be dealt with through direct and balanced dialogue," Foreign Ministry spokesman Sinan Al Majali said.

Both Jordan and the Saudi Arabia are US allies, with Jordan dependent on Saudi oil supplies to meet the bulk of its domestic consumption. Saudi Arabia is also the largest foreign investor in Jordan.

US President Joe Biden on Wednesday vowed to "take action" against Saudi Arabia after the Riyadh-led Opec+ alliance moved to cut oil production.

He did not say what the action might be, adding that he would consult members of Congress when they come back from recess.

The announcement could damage the US-Saudi security relationship.

Mr Al Majali said the oil price issue "should be approached on a technical basis and within the economic context, away from political polarisation".

He said Jordan supports any actions Saudi Arabia may take to protect its own "security, stability and its interests".

This month, Opec+ announced a decision to cut its crude oil output by 2 million barrels a day beginning in November amid signs of a global economic slowdown.

The move led to a more than 10 per cent surge in oil prices.

On Tuesday, oil edged lower as the prospect of supplies from strategic reserves eased market concerns of a tight market heading into the winter season.

Brent, the benchmark for two thirds of the world’s oil, was trading 3.03 per cent lower at $88.84 a barrel at 6.49pm UAE time on Tuesday. West Texas Intermediate, the gauge that tracks US crude, was down 3.91 per cent at $82.12 a barrel.