On Wednesday, the White House described the OPEC Plus decision to cut oil production as a “short-sighted decision”, noting that US President Joe Biden was “disappointed” with the decision.
“While maintaining global energy supplies is critical, this decision will have the most negative impact on low- and middle-income countries that are already experiencing high levels of energy,” National Security Adviser Jake Sullivan and White House Chief Economic Adviser Brian Dees said in a joint statement. energy prices.
The statement added that Biden “was disappointed by the decision… and will direct the release of oil from the strategic reserve as needed to protect American consumers and enhance energy security.”
The White House statement indicated that the Biden administration will consult with Congress on additional tools and mechanisms to reduce the control of the coalition of oil-producing countries on energy prices.
The statement also stated that Biden called on “American energy companies to continue to reduce fuel prices” for American consumers.
In turn, US Secretary of State Anthony Blinken said, on Wednesday, that the United States is working to ensure that energy supplies continue in the market and that prices remain low, following the OPEC + decision to reduce oil production.
Asked at a news conference in Chile whether he was disappointed with Saudi Arabia for agreeing to the decision, Blinken said Washington had “multiple interests in relation to Saudi Arabia.”
“We are working to ensure energy supplies from anywhere that meets actual demand in order for energy to remain in the market and prices to remain low,” Blinken added.
Before that, White House spokesman John Kirby said that the United States needs to reduce dependence on OPEC + and foreign oil producers, following the group of oil producers agreed on the largest production cuts since the Covid-19 pandemic in 2020.
Kirby also told Fox News that the cuts meant that OPEC+ was “reducing its numbers a little bit” following raising production over the summer.
“OPEC+ has been telling 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 added.
The OPEC + alliance agreed to 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 may lead to a recovery in oil prices, which fell to regarding $90, following it was $120 three months ago, due to fears of a global economic recession, raising US interest rates and a rising dollar.
Brent crude, the global benchmark, rose to $93 a barrel on Wednesday, following rising on Tuesday.
