Oil rises to high in 3 weeks and Biden studies “alternatives”

Oil prices stabilized at their highest level in three weeks on Thursday after the “OPEC +” alliance agreed to cut crude oil supplies by about two million barrels a day, the largest reduction since 2020.

Brent crude futures were up 88 cents, or 0.9%, to $ 94.25 a barrel by 1519 GMT, after rising 1.7% in the previous session.

US West Texas crude oil futures rose 79 cents, or 0.9%, to $ 88.55 a barrel, after rising 1.4% at the close on Wednesday.

On Thursday, US President Joe Biden again expressed his disappointment at the plans announced by OPEC + countries to reduce oil production. He said the United States is studying the alternatives available to them.

In response to a question about the “OPEC +” decision, Biden told reporters in the White House: “We are discussing the alternatives we might have.” “There are many alternatives,” she added. We have not decided yet”.

He added on the “OPEC +” decision, “but it is disappointing” and points to problems.

OPEC’s decision

The agreement between the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, an alliance known as “OPEC +”, precedes the EU ban on Russian oil, as it will put pressure on supplies in an already affected market a lack of supply, which will increase inflation.

Saudi Energy Minister Prince Abdulaziz bin Salman said the actual cut in the supply will be between one million and 1.1 million barrels per day. Saudi Arabia’s share of the cut is about half a million barrels per day.

US President Joe Biden’s administration criticized the deal, calling it “shortsighted”. The White House said President Joe Biden will continue to consider withdrawing more strategic oil stocks to lower prices.

The White House added that it will consult Congress on further paths to reduce OPEC + control over energy prices, in a clear reference to legislation that could subject members of the group to antitrust lawsuits.

In a separate context, Russian Deputy Prime Minister Alexander Novak said on Wednesday that Russia could cut oil production in an effort to counter the repercussions of the West’s imposition of a ceiling on Russian energy prices due to of the Russian invasion of Ukraine.

The US Energy Information Administration said the withdrawal of US oil stocks last week also supported prices. Inventories fell by 1.4 million barrels in the week ending September 30 to 429.2 million barrels. (Reuters)