Biden administration officials spent more than a week discussing with their counterparts from oil-producing countries in the Middle East how to mitigate production cuts by OPEC Plus, the group led by Saudi Arabia- leading the way, in an effort to keep global oil prices from rising. drastically.
That engagement has included outreach by top officials from the State Department, Treasury Department and National Security Council. Officials familiar with the calls say the efforts are not a departure from the administration’s efforts over the past year to push oil producers to maintain high production levels after the invasion. Russia’s strategy into Ukraine, which has rattled global markets.
“We are always talking to all producers and consumers, including our OPEC Plus partners,” said Adrienne Watson, a spokeswoman for the National Security Council. “That has been the case for decades and between bipartisan administrations, including this one. We have made it clear that energy supply must meet demand to support economic growth and lower prices for consumers around the world, and we will continue to talk to our partners about that. . “
Administration officials have reminded their counterparts that the United States plans to boost global oil demand in the near future by purchasing oil at a fixed price to load into the nation’s Strategic Oil Reserve. . Mr. Biden began releasing a million barrels a day from stockpiles in March in an effort to boost oil supplies and curb prices. Karine Jean-Pierre, the White House press secretary, told reporters this week that the administration has no plans to resume publishing beyond the end of the month, when the effort is scheduled to expire.
The eventual replenishment of reserves could help stabilize oil demand and increase revenues for major oil-producing countries. Energy Kit propose a regulation This summer, that will allow the government to enter into contracts to replenish reserves at fixed prices in the future. Administration officials said that effort could help boost oil production, because it would give oil producers peace of mind that they would be able to sell crude at the set rate even if oil prices were global. demand falls again.
The discussions – and decisions by global oil producers – come at a fragile time for the global oil market and for Mr. Biden’s domestic political calculations. After falling throughout the summer, global crude oil prices have begun to rise again. so, there gasoline prices across the United States, diminishing what used to be favorite bragging spot for Mr. Biden in recent months.
But as central banks around the world raise interest rates aggressively to reduce high inflation, fears of a global recession are growing. That could dent demand for oil and cause prices to plunge, hurting major oil producers. On the contrary, the price may increase at the end of the year if New round of European sanctions knocks millions of barrels of Russian oil off the global market every day – that’s why administration officials and their allies have pushed for an unproven plan to allow Russian oil to continue. continues to flow to the market, but is only sold at a reduced price.
