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U.S. calls OPEC+ move to cut oil output 'shortsighted'

Reuters Videos
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2 個月前

STORY: Oil prices rose to three-week highs on Wednesday, after OPEC and its allies agreed to make their deepest cuts to oil production in more than 2 years, causing one of its biggest clashes with the West.

The move comes despite pressure from the United States to pump more oil to help the global economy.

OPEC+, a group of some of the world’s most powerful oil producers, with Russia among them, agreed to cut production by 2 million barrels per day – or 2% of global demand – starting in November.

U.S. President Joe Biden called the decision "shortsighted" and White House spokeswoman Karine Jean-Pierre said the decision makes it clear that the group is aligning itself with Russia.

The decision could spur a recovery in oil prices that have dropped to about $90 a barrel from $120 three months ago on fears of a global economic recession.

OPEC+ members have said they are seeking to prevent volatility rather than to target a particular oil price.

The West has accused Russia of weaponizing energy, creating a crisis in Europe that could trigger gas and power rationing this winter.

White House advisors said Biden will also continue to direct releases from the nation's Strategic Petroleum Reserve as necessary, as he looks to prevent a rise in U.S. gasoline prices ahead of midterm congressional elections on Nov. 8.

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