The Biden admin. called Wednesday on the OPEC to increase oil production to fight rising gasoline prices.
“Higher gas prices, if left to continue, risk hurting the continuing global recovery,” said national security adviser Jake Sullivan. “The cost of oil has been more than it was in 2019, before the start of the covid-19 pandemic.”
“While OPEC+ recently accepted production boosts, these increases will not totally offset past production lowerings that OPEC+ has made during covid until 2022. At a critical time in the global recovery, this is just not enough,” the comment continued.
— Javier Blas (@JavierBlas) August 11, 2021
“We are working with some OPEC+ members on the vital nature of competitive markets in forming prices. Competitive energy will ensure stable and reliable energy supplies, and OPEC+ should do more to support this recovery,” Sullivan said.
OPEC+ is an international group of top oil producers that has the 13 OPEC nations, led by Saudi Arabia, as well as 10 more nations, led by Russia, that created a deal in 2016 with the goal of obtaining more control on the worldwide crude oil market.
Even with oil prices experiencing higher volatility because of the delta variant, Brent crude, the global oil marker, decreased by 0.8% to $70.04 per barrel shortly after the White House’s comment.
Republicans, however, were fast to criticize Biden for asking foreign powers for an increase in production given his domestic policy changes that have targeted the energy sector in the United States.
Reaching a whole new level of stupid, the Biden administration asks OPEC (foreign oil) to increase production, while making every possible attempt to destroy CLEANER American oil and gas.
Not just stupid, but anti-American. https://t.co/aqMvp7ogX2
— Dan Crenshaw (@DanCrenshawTX) August 11, 2021
One of President Biden’s first actions as president was to remove the permit for the Keystone XL pipeline, which would have brought over 800,000 barrels of oil per day from western Canada to certain refineries throughout America.
The Biden White House also quickly moved to suspend new gas and oil leasing and drilling permits for United States lands and waters.
The national average price of gas has consistently gone to record highs since Biden took office.
With Biden now asking the middle east for more oil, the regional powers have a big negotiating leverage to influence Biden in his decisions that affect the area. One being Iran and the desire of some to see the United States being drawn into a war with the terror-supporting country.
Author: Blake Ambrose