The White House has slammed the decision by OPEC+ to slash the cartel’s oil production by 2 million barrels a day as “shortsighted.”
But White House national security adviser Jake Sullivan and National Economic Council Director Brian Deese contended President Joe Biden was working to keep gas prices down five weeks before next month’s midterm elections.
BIDEN’S SUMMER BOUNCE SHOWS SIGNS OF FADING AHEAD OF MIDTERM ELECTIONS
In a statement, the pair amplified the White House argument that Russian President Vladimir Putin‘s invasion of Ukraine has been the predominant force behind the summer’s sticker shock.
“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,” they wrote Wednesday. “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.”
Although press secretary Karine Jean-Pierre told reporters this week the White House was not considering more releases from the Strategic Petroleum Reserve, Sullivan and Deese said Biden would direct the dumping of more crude oil on the market “as appropriate to protect American consumers and promote energy security.”
“He is directing the Secretary of Energy to explore any additional responsible actions to continue increasing domestic production in the immediate term,” they wrote. “The president is also calling on U.S. energy companies to keep bringing pump prices down by closing the historically large gap between wholesale and retail gas prices.”
“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,” Sullivan and Deese added.
Earlier Wednesday, Biden told reporters he was “concerned” by the decision made by Saudi Arabia-led OPEC+, describing it as “unnecessary.”
OPEC’s 13 member countries and Russia-allied nonproducer partners, known as OPEC+, met at the group’s headquarters in Vienna on Wednesday to discuss production policy.
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U.S. national gas price averages are lower than June’s high of $5 per gallon. The national average cost per gallon on Wednesday is $3.83, according to AAA.
