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Biden disappointed by 'shortsighted' OPEC+ cut, more SPR releases possible

Commodities Oct 05, 2022 01:22PM ET
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© Reuters. FILE PHOTO: U.S. President Joe Biden listens to a guest doctor speak during a meeting of the Reproductive Healthcare Access Task Force in the State Dining Room at the White House in Washington, U.S., October 4, 2022. REUTERS/Elizabeth Frantz

By Jarrett Renshaw and Timothy Gardner

WASHINGTON (Reuters) -President Joe Biden called on his administration and Congress to explore ways to boost U.S. energy production and reduce OPEC's control over energy prices after the cartel's "shortsighted" production cut, the White House said on Wednesday.

The Saudi Arabia-led OPEC+ cartel at a Vienna meeting on Wednesday ignored pleas from the White House to keep oil flowing and agreed to cut output by 2 million barrels per day, its deepest cuts in production since the 2020 COVID-19 pandemic.

The move drew a sharp response from Biden that underscores the growing rift between the United States and Saudi Arabia on energy policy.

"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 (Russian President Vladimir) Putin’s invasion of Ukraine," national security adviser Jake Sullivan and National Economic Council Director Brian Deese said in a statement.

Biden warned that he will now continue to direct releases from the nation's Strategic Petroleum Reserve "as necessary," a shift from the White House's previous comments that it would end the drawdown in the coming weeks.

Earlier this year, the Biden administration announced the largest sale ever from the reserve: 180 million barrels for six months beginning in May. Last month it extended that historic sale into November as only about 155 million barrels had been sold. It now aims to sell 165 million through November.

As a result, the amount of oil in the reserve has fallen to the lowest level since July 1984. It now holds about 416 million barrels of oil, well above what the United States is required by its membership in the International Energy Agency, at sites on the Texas and Louisiana coasts.

Rising oil and fuel prices are a risk to Biden's fellow Democrats as they seek to keep control of Congress in the Nov. 8 midterm elections.

Biden also pledged to consult with Congress on additional tools to cut OPEC's control over energy prices, a potential reference to a decades-long effort to open the cartel to antitrust lawsuits for orchestrating supply cuts.

The so-called NOPEC bill, which has brought up numerous times over the past 20 years but never enacted, easily passed a Senate committee in May.

The White House has previously expressed concerns about unintended consequences of the bill.

The White House is also worried about the cut cementing Saudi Arabia's closer cooperation with Russia, also a member of OPEC+, as oil revenues fund Moscow's war machine in Ukraine.

"Look it's clear that OPEC Plus is aligning with Russia with today's announcement," White House spokesperson Karine-Jean Pierre told reporters aboard Air Force One on Wednesday.

Biden disappointed by 'shortsighted' OPEC+ cut, more SPR releases possible
 

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Comments (12)
Trumpster Rocks
Trumpster Rocks Oct 06, 2022 12:01PM ET
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What do you expect with the Big guy and Sniff sniff selling out the USA
Trumpster Rocks
Trumpster Rocks Oct 06, 2022 11:58AM ET
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Well Let's face it The Only Real Option to End All this Utter Demo-Crout Nonsense is to reopen our Oil fields that this administration had the Bbbbig man Shut down on  Day 1 ! It's all intentional and we all have to suffer for their dreams of To tal a tar ian control of All of Us!
lakes Tenn
lakes Tenn Oct 05, 2022 3:54PM ET
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drill you demented potato head
Matthew Petyk
Matthew Petyk Oct 05, 2022 2:24PM ET
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LGB
Matthew Petyk
Matthew Petyk Oct 05, 2022 2:24PM ET
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LGB......
Tyler Phillis
Tyler Phillis Oct 05, 2022 1:29PM ET
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“Congress shall make no law respecting an idea of economy. The right to the peaceful exchange of values shall not be abridged.” That will fix it.
Casador Del Oso
Casador Del Oso Oct 05, 2022 12:25PM ET
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In fact, wasn't most of the SPR oil released exported to Europe?
Warm Camp
Warm Camp Oct 05, 2022 12:25PM ET
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US exports oil from Gulf ports and imports oil through East and West Coast ports. SPR storage sites are located close to Gulf ports.
Casador Del Oso
Casador Del Oso Oct 05, 2022 12:24PM ET
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Don't we export nearly all the oil we produce in the United States?
Warm Camp
Warm Camp Oct 05, 2022 12:24PM ET
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Certainly, not. In fact, US does both export and import of oil and oil products. In total, US is a net importer now, though the difference is not big. It was a net exporter in 2018-19 years.
Brad Albright
Brad Albright Oct 05, 2022 12:24PM ET
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The latest 4 week average of US imports for oil and products is 8 mbd, the 4 week average of oil and products US exports is 10.4 mbd -- a net export of 2.4 mbd. Get your facts straight.
HARI BABU
HARI BABU Oct 05, 2022 12:20PM ET
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Drama. JB is actually funding Russia and sending some primitive arms to zelen. He want an eternal conflict there.
Brad Albright
Brad Albright Oct 05, 2022 12:20PM ET
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It sounds like you have it figured our. You should run for office.
HARI BABU
HARI BABU Oct 05, 2022 12:20PM ET
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Brad Albright  Do u believe zelen opted to fight with huge monstrous Russia by himself? wonder.
Mike Hawk
Mike Hawk Oct 05, 2022 12:20PM ET
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Not a chance the democrats win mid terms
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Cody Hawkins
Cody Hawkins Oct 05, 2022 12:20PM ET
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CNN showed a Monmouth Univ. poll showing that 56% of likely voters are concerned about ***and 83% are concerned about inflation. So idk where you are getting your numbers from?
Cody Hawkins
Cody Hawkins Oct 05, 2022 12:20PM ET
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@b0rti0n
Cody Hawkins
Cody Hawkins Oct 05, 2022 12:20PM ET
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Not to mention thr countless other polls that show roughly the same thing.
Don Getty
Don Getty Oct 05, 2022 12:20PM ET
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Cody Hawkins  this is about opec - oil is a small segment of inflation and interest rates are still below average. Are people concerned sure but Russia is a huge part of oil price and inflation so short term verse Scotus insanity
Cody Hawkins
Cody Hawkins Oct 05, 2022 12:20PM ET
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I see. I was under the impression you meant ppl are less concerned about inflation.
 
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