The White House today reacted to what it called a “short-sighted decision” by OPEC and its allies to cut oil production by 2 million barrels a day, a move that could lead to higher prices domestically.’
National security adviser Jake Sullivan and top economic adviser Brian Deese issued a statement dissenting from the decision, citing ongoing concerns about the impact of the Russian invasion of Ukraine.
“At a time when maintaining a global energy supply is of paramount importance, this decision will have the most negative impact on low- and middle-income countries that are already reeling from high energy prices,” Sullivan and Deese said. . And they added that President Biden was “disappointed” by the decision.
The Energy Department will release 10 million barrels from the Strategic Petroleum Reserve next month, the White House said, and Biden will direct oil releases from the Strategic Petroleum Reserve “as appropriate to protect American consumers and promote security.” energetic”.
“The President also calls on America’s energy companies to continue to lower gas station prices by closing the historically large gap between wholesale and retail gasoline prices so that American consumers pay least at gas stations,” Sullivan and Deese said.
The announced OPEC+ cut, which includes the 13 OPEC nations and 11 non-OPEC nations including Russia, is equal to about 2% of global supplies. The move flies in the face of a push by Biden and the White House to get the coalition to avoid a production cut.
Biden visited Saudi Arabia in July to appeal directly to its leaders to increase oil production, despite his administration’s frequent criticism of the kingdom’s human rights record.
After the meeting, Saudi Arabia announced an increase in production, but significantly less than that requested by the United States. It’s unclear what immediate effect the production cut will have on gasoline prices, but any rise in costs this close to the midterm elections could be problematic for Biden and Democrats.
The White House also used the announcement to highlight the importance of weaning off fossil fuels, which has been a key part of the Biden administration’s agenda.
Associated Press/OnCuba.
