(Daily Mail) The White House said on Wednesday that ‘it’s clear’ the OPEC+ oil alliance ‘is aligning with Russia’ after it announced a massive production cut of two million barrels.
It stands to be a big boost for Moscow, despite the West’s efforts to choke off oil and gas revenues as a source of cashflow to fund Russia’s illegal invasion of Ukraine.
Meanwhile American drivers could face another increase in gas prices in what could end up being a massive setback for the Biden administration.
Energy ministers from the OPEC cartel, whose leading member is Saudi Arabia, and allied non-members including Russia met in person at the group’s Vienna headquarters for the first time since early 2020.
Their announced production cutback on Tuesday is the largest since the start of the COVID-19 pandemic. It comes after oil barrel prices dropped roughly a quarter in just three months, now around $90, amid fears of a looming global recession.
However, some parts of the US have seen prices jump back up again by up to 60 cents per gallon, according to the Washington Post, underscoring the already-precarious environment.
President Joe Biden was asked about OPEC+’s decision as he boarded Marine One ahead of a visit to hurricane-ravaged Florida but told reporters he ‘needs to see the details.’
He said he was ‘concerned’ and that it was an ‘unnecessary’ step, according to reports.
A joint statement from White House National Security Advisor Jake Sullivan and National Economic Council Director Brian Deese said Biden ‘is disappointed by the shortsighted decision.’
‘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,’ the statement read.
The White House is ‘having a spasm and panicking’ over OPEC’s expected decision to cut oil production, an unnamed official told CNN
Republicans have hammered Democrats on the relative silence with gas prices steadily rising after the White House celebrated them going down over the summer
OPEC+’s decision could potentially be a financial boost for Moscow’s illegal invasion of Ukraine
They also suggested that a new legislative effort could be on the table, adding: ‘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.’
The announcement’s effect on the pumps is not yet certain, but the decision as left the Biden administration scrambling to avoid a ‘total disaster’ according to a CNN report.