OPEC+ decision to cut production 'shortsighted': Biden
Biden and his administration are working up a scheme against international interest.
US President Joe Biden has expressed disappointment in the OPEC+ alliance's "shortsighted decision" to cut oil production against the background of supply issues, according to Jake Sullivan, National Security Advisor, and Brian Deese, National Economic Council Director.
"The President is disappointed by the shortsighted decision by OPEC+ to cut production quotas while the global economy is dealing with the continued negative impact of Putin’s invasion of Ukraine. At a time when maintaining a global supply of energy is of paramount importance, this decision will have the most negative impact on lower- and middle-income countries that are already reeling from elevated energy prices," the two officials said in a joint statement.
Biden's administration, in response, will work with the US Congress to reduce OPEC's influence on global energy prices, Sullivan said.
"In light of today’s action, the Biden Administration will also consult with Congress on additional tools and authorities to reduce OPEC's control over energy prices," the officials said in a joint statement.
Earlier today, the alliance agreed to cut oil production by 2 million barrels a day starting November.
The US is concerned that OPEC's probable decision to reduce oil production will pose serious problems for the country and may even be interpreted as a hostile act, according to a US Treasury report.
The Biden administration assembled its top energy, economic, and foreign policy officials and entrusted them with lobbying Middle East allies such as Saudi Arabia, the United Arab Emirates, and Kuwait to vote against decreasing oil production.
To persuade its OPEC allies, the US proposed to purchase back up to 200 million barrels of oil from its OPEC partners.