White House welcomes OPEC+ decision to stick to planned output increase

The White House on Tuesday welcomed the decision of major oil producers to stick to their plans to increase crude production and touted “close” coordination with Saudi Arabia and the United Arab Emirates.

Earlier on Tuesday, a producer group including the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia stuck to an expected increase of 400,000 barrels per day for February.

The decision not to increase production even further has contributed to further increase in oil prices. Brent crude rose 50% last year and has rallied so far in 2022, trading 2% above $ 80 on Tuesday.

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“The administration is working to ensure supply rises to match demand as the global economy recovers and Americans see lower prices at the pumps – where we have seen progress in recent years. weeks, “said a White House National Security Council spokesperson who declined to be named.

The spokesperson added that the OPEC + decision would support the global economic recovery.

“We appreciate the close coordination over the past few weeks with our partners in Saudi Arabia, the United Arab Emirates and other OPEC + producers to help deal with price pressures. We welcome OPEC + ‘s decision to continue increasing production. “

In previous months, the Biden administration has called OPEC + ‘s identical production increases insufficient and criticized the producer group for hampering economic recovery after the recession induced by the COVID-19 pandemic.

The Biden administration, under pressure from sharply rising inflation across a range of consumer goods, has also targeted a possible price hike by gasoline sellers and announced a release of its strategic oil reserve.

OPEC +, which will then meet on February 2, sharply reduced production by 10 million barrels per day in 2020 as demand plummeted.

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