US urged OPEC+ Members to increase Oil Production to meet Energy Crisis

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An official of the Biden administration said Washington is still pressing OPEC+ members to enhance oil production following a global energy crisis. It has pushed gas prices to their highest level in years. A White House official informed a news outlet that the Biden administration maintains its stance that OPEC should do more to address the crisis. Administration officials have held senior-level talks with OPEC members regarding the situation. The official said, “The Biden administration is utilizing every tool at our disposal to address anti-competitive practices in US and global energy markets to ensure reliable and stable energy markets”. Moreover, oil prices have surged to a 7-year high in recent days, topping $82 per barrel on Monday. Production has trailed behind rising demand as economies around the world ramp up activity from COVID-19 pandemic levels.

The crisis has pushed the cost of a gallon of gas to an average of $3.27. OPEC+, a group comprised of members of the OPEC oil cartel and allies including Russia, has resisted calls to increase production faster than scheduled to meet the rising demand. OPEC+ nations earlier said they would continue to increase oil production along with monthly benchmarks as they previously agreed (a decision that caused a spike in US crude oil prices). The White House has pushed for weeks for OPEC and its allies to take steps to stabilize the global oil market. White House Press Secretary Jen Psaki said last month that the administration would continue to speak to international partners, including OPEC, on the importance of competitive markets and setting prices, and doing more to support the recovery.

Point to be noted that National Security Adviser Jake Sullivan said in August that OPEC+’s rate of oil production increases was simply not enough. The White House has declined to take direct action to alleviate rising gas prices. The Deputy Press Secretary of White House, Karine Jean-Pierre said, “The administration would work with our agency partners to determine if and when actions are needed”. However, gas prices have jumped across the nation as oil prices reach a 7-year high, leaving only 8 states with prices under $3 per gallon. The average price of gas across the nation stands at about $3.25 per gallon after jumping from 5.2 cents a week ago. Prices are up 7.5 cents compared to a month ago and up more than $1 from a year ago.