Biden calls on OPEC to increase oil production amid rising gas prices

The White House is pressuring OPEC and its allies to increase oil production in a bid to tackle rising gasoline prices – despite tighter restrictions imposed on U.S. oil companies last year.

Biden’s National Security Advisor Jake Sullivan issued a statement on Wednesday urging OPEC – the Organization of the Petroleum Exporting Countries – to act faster to restore the world’s gasoline supply to pre-pandemic levels .

“Rising gasoline costs, if left unchecked, could hurt the ongoing global recovery. The price of crude oil has been higher than it was in late 2019, before the pandemic began, ”Sullivan said.

“Although OPEC + recently agreed to production increases, these increases will not fully offset previous production cuts imposed by OPEC + during the pandemic through 2022. At a critical time in the global recovery, this is simply not enough.

OPEC cut production by 10 million barrels per day last year as demand for supply plummeted amid COVID-19.

Since then it has gradually increased, then cuts were around 5.8 million barrels per day last month.

OPEC has already agreed to increase production by 400,000 barrels per day each month from August.

“Production cuts made during the pandemic should be reversed as the global economy recovers in order to lower prices for consumers,” President Joe Biden told reporters on Wednesday.

Gasoline prices are currently averaging $ 3.18 per gallon at the pump, which is an increase of more than $ 1 from last year, according to the American Automobile Association.

Biden’s push for lower fuel prices appears to align with his administration’s efforts to be a world leader in the fight against climate change.

The White House has set itself the goal of decarbonising the US economy by 2050.

Biden last year issued a sweeping moratorium on new oil and gas leases on federal lands pending a review of its environmental and climate impacts.

Texas Republican Senator John Cornyn on Wednesday slammed Biden for the conflicting priorities.

“It’s pretty simple: if the president is suddenly worried about rising gas prices, he must stop killing our own energy production here on US soil,” Cornyn said.

With post wires.