On Wednesday, the White House described OPEC Plus’ decision to cut oil production as a “shortsighted decision”, noting that US President Joe Biden was “disappointed” with the decision.
“While maintaining global energy supply is key, this decision will have the most negative impact on low- and middle-income countries that are already experiencing rising energy levels,” National Security Advisor Jake Sullivan and Advisor said. Economic White House Chief Brian Dees in a joint energy pricing statement.
The statement added that Biden “was disappointed with the decision … and will direct the release of oil from the strategic reserve as needed to protect American consumers and improve energy security.”
The White House statement indicated that the Biden administration will consult with Congress on additional tools and mechanisms to reduce the coalition’s control of oil-producing countries over energy prices.
The statement also stated that Biden called on “American energy companies to continue lowering fuel prices” for American consumers.
In turn, US Secretary of State Anthony Blinken said on Wednesday that the US is working to ensure that energy supplies continue on the market and that prices remain low, following OPEC + ‘s decision to cut production. of oil.
Asked at a press conference in Chile if he was disappointed by Saudi Arabia for accepting the decision, Blinken said Washington had “multiple interests in relation to Saudi Arabia.”
“We are working to ensure energy supplies from anywhere that meet effective demand so that energy stays on the market and prices stay low,” added Blinken.
Earlier, White House spokesman John Kirby said the US must reduce dependence on OPEC + and foreign oil producers after the oil producer group agreed on major production cuts since the Covid pandemic. -19 in 2020.
Kirby also told Fox News that the cuts meant OPEC + was “cutting its numbers down a bit” after ramping up production over the summer.
“OPEC + has told the world that they are producing three and a half million barrels more than they actually produce … So, in some respects, this announced cut only brings them back to being more in line with actual production,” he said. added .
The OPEC + alliance agreed on the largest production cut since the Covid-19 pandemic, at a meeting in Vienna on Wednesday, limiting supplies in an already tight market despite pressure from the United States and other countries to pump more.
And the OPEC + production cut could lead to a recovery in oil prices, down to about $ 90, from $ 120 three months ago, due to fears of a global economic recession, rising US interest rates. and the rise of the dollar.
Brent crude, the global benchmark, rose to $ 93 a barrel on Wednesday after rising Tuesday.
