The United States is nudging those Organization of Petroleum Exporting Countries OPEC and his allies, known as the OPEC+ nations, too avoid significant cuts in oil production as President Joe Biden trying to prevent US gasoline prices from rising, Reuters reported.
What happened: Washington argues with OPEC+ that economic fundamentals do not support a production cut, reported Reuters citing sources.
Oil prices have fallen over the past four months, buoyed by fears of a global recession, after central banks around the world aggressively hiked interest rates to curb inflation. However, prices rose over 3% on Monday after reports suggested that OPEC+ is likely to consider a production cut of over a million barrels a day in the new trading week.
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That United States Brent Oil Fund BNO closed 3% higher on Tuesday during the Vanguard Energy Index Fund ETF VDE closed over 4%.
White House press secretary Karine Jean Pierre said they would not comment on any OPEC action until the organization acts. “In any case, we will continue to take steps to protect American consumers. Our focus – and this has been very clear over the past several – several months – has been to take every step to ensure markets are adequately supplied to meet the demand of a growing global economy,” she said.
Why it matters: A rise in oil prices could potentially hurt Democrats’ prospects during the Nov. 8 congressional election, the report said. OPEC+ cut production by 100,000 barrels a day in September.
Continue reading: Oil jumps over 3% as OPEC+ Meet Eyed: Analysts say this is the absolute minimum supply cut markets need to be concerned about
