Saudi Arabia and US will get over 'unwarranted' oil disagreement, says kingdom's minister

Opec’s move to cut production sparked criticism from White House but Saudi ministers and Wall Street chiefs say blip won't derail long-term alliance

Saudi Arabia's Investment Minister Khalid Al Falih said the spat between Riyadh and Washington would blow over. Bloomberg

Saudi Arabia and the US will get over their "unwarranted" disagreement over oil supplies, the kingdom's investment minister told the Future Investment Initiative in Riyadh on Tuesday, highlighting long-standing corporate and institutional ties.

This month's decision by the Opec+ alliance led by Saudi Arabia to cut oil output targets unleashed a war of words between the White House and Riyadh before the kingdom's FII forum, which again drew top US business executives.

The row raised tension between the two traditional allies.

"If you look at the relationship with the people side, the corporate side, the education system, you look at our institutions working together, we are very close and we will get over this recent spat that I think was unwarranted," Saudi Investment Minister Khalid Al Falih said.

While noting that Saudi Arabia and the US were "solid allies" in the long term, he highlighted that the kingdom was also "very strong" with Asian partners, including China as the biggest importer of Saudi hydrocarbons.

Like previous years, the three-day FII forum that opened on Tuesday saw a big turnout from Wall Street, as well as other industries with strategic interests in Saudi Arabia, the world's top oil exporter.

JP Morgan Chase's chief executive, Jamie Dimon, speaking at the gathering, voiced confidence that Saudi Arabia and the US would safeguard their 75-year-old alliance.

"I can't imagine any allies agreeing on everything and not having problems — they’ll work it through," Mr Dimon said. "I'm comfortable that folks on both sides are working through and that these countries will remain allies going forward and hopefully help the world develop and grow properly."

No Biden administration officials were visible at the forum on Tuesday. In front-row attendance was featured speaker Jared Kushner, a former senior aide to former president Donald Trump, who enjoyed good relations with Saudi Arabia's Crown Prince Mohammed bin Salman.