US prepares its response to OPEC+’s “short-sighted” strategy

The United States is considering “response options” in its relations with OPEC+ members and its de facto leader Saudi Arabia after the group announced a major nominal cut of 2 million barrels per day in its collective oil production target earlier this week, the US Secretary of State said. Foreign Affairs Antony Blinken. .

“As for the future relationship, we are looking at a number of response options. We are in close consultation with Congress,” Minister Blinken said late on Thursday at a press conference in Peru.

“We will not do anything that violates our interests – that is what will guide us in the first place – and we will keep all those interests in mind and consult closely with all relevant stakeholders when making decisions about future steps,” added Secretary Shine on.

Asked to comment on the OPEC+ production cut, he said: “We see the decision as both disappointing and short-sighted, especially as we have a global economy dealing with the implications of recovering from COVID, as well as Russia’s aggression in Ukraine, the consequences that will have.”

“We have been saying all along that supply must meet demand, and we have been clear about that and we have worked on that,” said Minister Blinken.

Following the OPEC+ decision, U.S. National Security Adviser Jake Sullivan and National Economic Council (NEC) Director Brian Deese said in a statement: “The president is disappointed with OPEC+’s short-sighted decision to cut production quotas as the global economy weakens. has to do with the ongoing negative impact of Putin’s invasion of Ukraine.”

“In light of today’s action, the Biden administration will also consult Congress on additional tools and authorities to reduce OPEC’s control over energy prices,” Sullivan and Deese added.

President Joe Biden has ordered the Department of Energy to bring an additional 10 million barrels from the Strategic Petroleum Reserve (SPR) to market next month, she added.

“The President will continue to direct the SPR releases as needed to protect U.S. consumers and promote energy security, and direct the Secretary of Energy to explore any additional responsible actions to continue increasing domestic production in the near term. “

By Tsvetana Paraskova for Oilprice.com

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