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Biden administration pushes for 'compromise solution' in OPEC+ talks

Published 07/05/2021, 04:57 PM
Updated 07/05/2021, 05:00 PM
© Reuters. FILE PHOTO: The logo of the Organisation of the Petroleum Exporting Countries (OPEC) sits outside its headquarters ahead of the OPEC and NON-OPEC meeting, Austria December 6, 2019. REUTERS/Leonhard Foeger/File Photo

© Reuters. FILE PHOTO: The logo of the Organisation of the Petroleum Exporting Countries (OPEC) sits outside its headquarters ahead of the OPEC and NON-OPEC meeting, Austria December 6, 2019. REUTERS/Leonhard Foeger/File Photo

WASHINGTON (Reuters) - The Biden administration is pushing for a "compromise solution" in stalled OPEC+ oil output talks, a White House spokesperson said on Monday.

OPEC+ ministers called off those talks on Monday after the United Arab Emirates rejected a proposed eight-month extension to curbs on output. Four OPEC+ sources told Reuters there has been no progress toward a deal.

"The United States is closely monitoring the OPEC+ negotiations and their impact on the global economic recovery from the COVID-19 pandemic," the White House spokesperson said in a statement.

"We are not a party to these talks, but Administration officials have been engaged with relevant capitals to urge a compromise solution that will allow proposed production increases to move forward."

A rise in oil prices, which are at their highest levels since 2018, has helped fuel inflation concerns. U.S. President Joe Biden has made the economic recovery from the recession triggered by the coronavirus pandemic a key priority for his administration.

Stable oil market conditions are needed to power the recovery and meet the administration's goal of affordable and reliable energy, Biden aides said on condition of anonymity.

International benchmark Brent crude oil was trading above $77 a barrel on Monday, or 1.2% higher in the session.

© Reuters. FILE PHOTO: The logo of the Organisation of the Petroleum Exporting Countries (OPEC) sits outside its headquarters ahead of the OPEC and NON-OPEC meeting, Austria December 6, 2019. REUTERS/Leonhard Foeger/File Photo

OPEC+, which groups the Organization of the Petroleum Exporting Countries with Russia and other big producers, agreed to record output cuts of almost 10 million barrels per day (bpd) last year, equivalent to about 10% of world output, as the pandemic hit. The curbs have been gradually relaxed and currently stand at about 5.8 million bpd.

The UAE, sources said, on Friday accepted a proposal from Saudi Arabia and other OPEC+ members to raise output in stages by about 2 million bpd from August to December but rejected extending remaining cuts to the end of 2022 from a current end date of April without adjusting its current baseline production.

Latest comments

Greedy arabs vs weak US..lame.
Biden needs to grow some balls and just mention strategic oil reserve in a sentence. we have all the oil this economy needs, just force these countries hand and they will pump. since when did we want a stable OPEC? they are vulnerable right now, take advantage of it and pull some reserve, OPEC would crumble.
Nice talk bro..that shud do. Tell the world that oil producer not just opec lead by greedy arabs.
I'm guessing the energy sector will be hot tomorrow
More deals that favor Russia etc from Biden. Weakest president for Russia in US history. Same for UAE and other Middle Eastern countries.Maybe one day he'll do something pro-America.
Trump's better in this matter...result oriented rather than just talk without action. Shame... Just lift the Iran sanction n see how the selfish arabs react..
Fake Temporary administration!
i still remember the dispute between Russia and suadi arabia when the oil plummeted. Today , the dispute between UAE and Saudi Arabia might go rough towards the oil price !
Don't you just love the quote by the unnamed administration source...Stable oil market conditions are needed to power the recovery and meet the administration's goal of affordable and reliable energy, Biden aides said on condition of anonymity.These are the same people that have destroyed our energy sector.
Trump made US energy independent. Burisma Joe reverts it and kowtows to OPEC. Big surprise.
Think BIGGER.
Shows the hypocrisy of Biden and the Democrats.  High oil prices are the best way to encourage the production of renewable energy, and switch to EV's, but they won't admit it or they risk losing support from their naïve followers.  It's basic economics.  Hope Greta and her supporters are taking note!
Their goal is to blame the inflation on high oil prices
"high " should be $200/bbl.
Oh look.. a dem president back to shucking middle east _____.. What a shocker!
exact reason Trump didn't depend on OPEC He had USA independent of outside sources and gas prices much lower
I voted for Trump Millenials want free handouts and voted Biden
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