BIDEN BLOWS UP OIL PRICES BY CANCELLING DRILLING IN U.S. NOW BEGS OPEC

WASHINGTON—Worried about rising gas prices, the Biden administration has called on oil-producing countries including Saudi Arabia and Russia to raise their oil production. Strong recovery in global demand and slow growth in supplies have been pushing crude oil prices higher in recent months.

National security adviser Jake Sullivan issued a statement on Aug. 11 asking the Organization of the Petroleum Exporting Countries and Russia (OPEC+) to address rising gasoline costs.

“Higher gasoline costs, if left unchecked, risk harming the ongoing global recovery,” Sullivan warned.

In July, OPEC+ ministers agreed to boost oil production by 0.4 million barrels per day (bpd) on a monthly basis from August until year-end. The decision came amid a strong rebound in global demand.

But this increase isn’t enough, according to the White House, to ensure “reliable and stable global energy markets.”

“While OPEC+ recently agreed to production increases, these increases will not fully offset previous production cuts that OPEC+ imposed during the pandemic until well into 2022,” Sullivan said in the statement.

“At a critical moment in the global recovery, this is simply not enough.”

OPEC+ last year cut production by a record 10 million bpd due to the slump in demand caused by the pandemic. The cut had been eased to about 5.8 million bpd in July.

Gas prices in the United States have risen by more than 40 percent from a year ago. The national average gas price stood at $3.185 per gallon on Aug. 11.

“President Biden has made clear that he wants Americans to have access to affordable and reliable energy, including at the pump,” Sullivan said. “We are engaging with relevant OPEC+ members on the importance of competitive markets in setting prices.”

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