Biden says Saudi Arabia will be punished for collaborating with Russia

President Joe Biden has said there would be consequences for Saudi Arabia for collaborating with Russia to trim oil production, an indication that cracks have appeared in the relationship between the two long-time allies.

What Happened: Biden told CNN s Jake Tapper in an interview in October that there are going to be some consequences for what they have done with Russia, reported Reuters.

Policy Review: As anger boiled over the decision of the Organization of the Petroleum Exporting Countries and its allies, including Russia, the OPEC Biden s staff announced that he would re-evaluate the entire relationship with Saudi Arabia.

After the announcement, oil prices went up, with some early losses, with some ETFs also gaining in the process. The United States Brent Oil Fund BNO has gained more than 1% in the last five days, while the Vanguard Energy Index Fund ETF VDE has traded flat in the same period.

The White House press secretary Karine Jean-Pierre said a policy review would be conducted but did not provide any further details.

The output cut was 2 million barrels per day, a move that was opposed to the Biden administration's push.

Security Threat: John Kirby, a White House national security spokesman, said Biden would work with Congress to think through what that relationship should look like going forward. Most U.S. arms sales to Saudi Arabia are done with a regional threat in mind. We won't take our eye off the threat that Iran poses to the region, but in some ways beyond, Price said.

Read Next: Janet Yellen calls the OPEC move ''Unhelpful And Unwise For Global Economy: 'Very Worried About Developing Countries''