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US criticizes OPEC+ cuts aimed at increasing global oil prices

The Biden administration is criticizing an announcement by OPEC+ members that they will cut oil production, arguing it is not advisable.

“We don’t think cuts are advisable at this moment given market uncertainty — and we’ve made that clear,” a spokesperson for the National Security Council said.

Saudi Arabia, along with Russia and other OPEC+ oil producers, announced Sunday that they are planning on cutting 1.16 million barrels per day, Reuters reported. This comes after the oil producing countries had already pledged to cut production of 2 million barrels a day through the end of the year.

The cuts will begin next month, with Saudi Arabia planning its own 500,000 barrel-a-day reduction, Bloomberg reported. President Biden had threatened that there would be “consequences” for Saudi Arabia, after the country announced the production cut last October of about 2 million barrels per day.

The NSC spokesperson reiterated that the administration is more focusing on bringing down oil prices in the U.S. from their peak last year. The ongoing Russia-Ukraine war had caused gas prices to spike last summer, reaching a $5-per-gallon average.

The average gas price in the United States on Sunday is about $3.50 compared to the $4.20 per gallon average recorded about a year ago, according to AAA.

“But we’re focused on prices for American consumers, not barrels, and prices have come down significantly since last year, more than $1.50 per gallon from their peak last summer,” the spokesperson continued.

“We will continue to work with all producers and consumers to ensure energy markets support economic growth and lower prices for American consumers,” the spokesperson added.

Source: The Hill

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