Biden’s OPEC cut short-sighted criticism… Additional release of strategic oil reserves next month

OPEC+ cuts production again amid stagnant decline in gasoline prices in the US… Concerns about the impact of midterm elections
Biden plans to negotiate with Congress on measures to curb OPEC’s influence on energy prices

US President Joe Biden expressed disappointment by strongly criticizing the policy of OPEC+ (OPEC+), a consultative group between the Organization of Petroleum Exporting Countries (OPEC) and major non-OPEC oil producing countries such as Russia, as a short-sighted decision.

In the midterm elections on the 8th of next month, the US decided to release additional strategic oil reserves next month as inflation became a major issue.

The White House released a statement on the 5th (local time) in the name of National Security Adviser Jake Sullivan and National Economic Council Chairman Brian Diess, saying, “The president is optimistic about the OPEC+ response to the negative impact of Putin’s invasion of Ukraine on the global economy. “I was disappointed with the short-sighted decision to cut production,” he said.

“Maintaining an international supply of energy is the most important thing at this point,” he said.

After emphasizing that the price of gasoline at US gas stations has fallen by about $1.2 per gallon in recent years, the White House said, “The actions the President has taken with his allies at home and around the world have contributed to stabilizing gasoline prices in the United States.” did.

In response, President Biden directed the release of an additional 10 million barrels of oil from its strategic stockpile in November and asked whether additional measures could be taken to boost domestic energy production in the near term, the White House said.

“The President will continue to direct the release of strategic oil reserves as necessary to protect American consumers and enhance energy security,” the White House said.

President Biden also asked refiners to cut product prices to cut margins, and agreed with Congress to discuss measures to reduce OPEC’s influence on energy prices.

At the same time, the White House emphasized the importance of the transition to clean energy by discussing a method to reduce inflation, which is attracting attention due to discrimination against Korean electric vehicles.

The White House said “inflation The passage of the Reduction Act will increase the reliance on U.S.-manufactured and U.S.-made clean energy and related technologies, increasing energy securityWe are ready to make the biggest investment to accelerate the transition to clean energy while strengthening the

Earlier, OPEC+ announced in a statement after the monthly ministerial meeting that it had decided to cut production by 2 million barrels per day in November from the previous month.

Biden

President Biden responded to the decision by issuing a statement at the White House level, apparently because he was concerned that oil prices could negatively affect the November midterm elections.

Gasoline prices, which once soared to an average price of more than $5 per gallon, have been on a downward trend for a while, but have recently stagnated at an average of around $3 per gallon. .

In addition, President Biden abandoned his beliefs about human rights issues under the pretext of setting oil prices and visited Saudi Arabia, which is influential in the international oil market, but Saudi Arabia is not actively cooperating. is cited

As President Biden concluded his visit to Saudi Arabia in July, he said, “I am looking forward to what will happen in the next few months,” suggesting that additional measures may be taken at the OPEC+ level. They are moving in the opposite direction while making the decision to cut production.

/yunhap news

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