The White House said – today, Thursday – that all options are on the table following the decision of the “OPEC Plus” alliance to reduce its oil production, despite US warnings that this would raise the price of fuel and endanger the world’s economies.
The decision angered Washington, which accused the group of siding with Moscow, at a time when US President Joe Biden is leading international efforts to isolate energy-producing Russia over its invasion of Ukraine, while also working to reduce fuel prices for Americans before the midterm elections for Congress next month.
Biden told reporters that he was disappointed and “we are looking at alternatives that we might have to meet the expected price increases,” adding that there are “a lot of alternatives.”
The US administration’s measures may include withdrawing additional quantities from the Strategic Petroleum Reserve, increasing internal oil exploration, and imposing more strict measures, including placing restrictions on exports.
US officials remain cautious regarding next steps, but White House chief economic adviser Brian Dees told reporters on Air Force One that “we need to look at what tools are needed.”
“The president has emphasized that all options are on the table and will remain so,” Dess added.
He also refused to rule out an idea being discussed in Congress regarding passing a law that would drop sovereign immunity in antitrust lawsuits, which would allow the US government to sue members of the “OPEC Plus” alliance.
“We will assess and consult closely with Congress on a range of issues,” the senior adviser said.
Deiss stressed that the decision of the oil alliance is “unjustified” at a time when the global economy is suffering from severe weakness, and that the lack of supply remains a major challenge for consumers.
But he said that production cuts may not have a significant impact on the markets, as was feared, because coalition members are already facing difficulties in meeting production quotas, which means that the figure of two million barrels per day does not reflect reality.
“We have to see the actual impact of this. The impact on production will certainly be much less than that,” concluded the US President’s advisor.
