The White House called it inappropriate to cut OPEC + oil production

The Joe Biden administration reacted to the decision of eight countries, including Russia, to voluntarily reduce oil production. A spokesman for the White House National Security Council said it was inappropriate.

“We do not believe that the reduction is now appropriate, given the uncertainty in the market,” a spokesman for the National Security Council told reporters (quoted from Reutersthe name of the speaker is not given).

The official noted that Washington is focused on fuel prices for American consumers. He recalled that they have declined significantly over the past year. The White House promised to work with oil producers and consumers to ensure that “energy markets provide economic growth and lower prices” for Americans.

Saudi Arabia and other major Arab oil producers UAE, Iraq and Kuwait on the eve of April 2 decided to support efforts Russia and unilaterally cut production. We are talking about a reduction of 1 million barrels per day from May until the end of the year, while Russia will extend for the same period the reduction in production by 500 thousand barrels already begun in March. OPEC+ countries call this step a preventive measure to stabilize the market. Western analysts expect increased tensions between the US and Saudi Arabia. In their opinion, an increase in oil prices will push inflation and make it even more difficult for the US Federal Reserve to find a balance between increasing the key rate and maintaining financial and economic stability.

Read more about the reduction in production – in the material “Kommersant” “Foreign countries did not let us down”.

Leonid Uvarchev