Biden administration is "assessing" its reaction to OPEC+ alliance's decision to cut two million barrels a day, officials say, as Western allies seek to cap oil money flowing into Russia's war chest.

Move by OPEC+ is reigniting US voters' No. 1 fear — high inflation — and handing a potential boost to Republican candidates less than five weeks before November 8 midterm elections.
Move by OPEC+ is reigniting US voters' No. 1 fear — high inflation — and handing a potential boost to Republican candidates less than five weeks before November 8 midterm elections. (Reuters Archive)

Democratic members of the US Congress have called for a sharp reduction in military sales to Saudi Arabia, as President Joe Biden considered how to respond to plans by OPEC+ nations to cut oil output.

OPEC+, which combines OPEC countries and allies such as Russia, agreed to steep oil production cuts on Wednesday, curbing supply in a tight market and raising the possibility of higher gasoline prices right before the November 8 US midterm elections, when Biden's Democrats are defending their control of the House of Representatives and Senate.

"I think it's time for a wholesale re-evaluation of the US alliance with Saudi Arabia," Senator Chris Murphy, chairman of the Senate foreign relations subcommittee on the Middle East, told CNBC on Thursday.

In the House, representatives Tom Malinowski, Sean Casten and Susan Wild introduced legislation seeking the withdrawal of US troops from Saudi Arabia and the United Arab Emirates.

Representative Ruben Gallego suggested the United States take back Patriot missile defence systems deployed in Saudi Arabia. "If they like the Russians so much they can use their very 'reliable' military technology," Gallego said on Twitter.

Saudi Arabia is the largest customer of US-made military equipment, with billions of dollars in orders approved by the State and Defense departments each year. In August, the Biden administration announced a sale to Saudi Arabia of Patriot missile interceptors and equipment worth up to $3.05 billion.

Raytheon Technologies was the prime contractor for the Patriot interceptors.

Lawmakers have the right to review major arms sales and to stop them under the Arms Export Control Act of 1976. But Congress has never been able to garner enough votes to stop a sale, including three failed efforts to override former president Donald Trump's 2019 vetoes of resolutions that would have stopped sales to the Saudis.

It was not clear that the United States would be able to take back any Patriot system or other military equipment already transferred or sold to Saudi Arabia.

READ MORE: OPEC+ agrees major oil output cut, irking US

US assessing response after OPEC+ decision

"As a practical matter, it is exceedingly difficult to imagine a scenario in which the president authorises the deployment of a 'military repo force' to Saudi Arabia to recover previously sold defence articles because he disagrees with OPEC on petroleum output," said Franklin Turner, a government contracts lawyer at McCarter & English.

In addition, there would be "immense logistical challenges" associated with such an operation, Turner said, adding such an act would severely strain diplomatic relations with the kingdom.

Biden's economic adviser Brian Deese was asked on Thursday why US taxpayers should offer US weaponry and defence support to Saudi Arabia in light of the OPEC+ decision.

Deese told reporters on Air Force One he had no announcements. 

"As we mentioned yesterday, we will be assessing and consulting closely with Congress around a range of issues on the back end of this and beyond that," Deese said.

READ MORE: OPEC+ agrees to cut oil output as it seeks to lift prices

Source: Reuters