Earlier on Tuesday, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, agreed to a 400,000-barrel-per-day rise for February.
The decision not to increase output further aided the rise in oil prices. Brent crude surged 50% last year and is up 2% so far in 2022, trading 2% higher than $80 on Tuesday.
“The government is focused on ensuring that supply grows to match demand as the global economy improves and that Americans experience reduced prices at the pump – where we have seen progress in recent weeks,” said a White House National Security Council official who declined to be identified.
The OPEC+ decision, according to the spokeswoman, would help the world economy recover.
“We welcome the tight collaboration with our allies Saudi Arabia, the UAE, and other OPEC+ producers in recent weeks to assist manage pricing challenges.” We applaud OPEC+’s decision to maintain output increases.”
In previous months, the Biden administration slammed OPEC+’s equivalent increases in output as inadequate, and chastised the coalition of producers for impeding the economic recovery from the crisis.
Under pressure from dramatically increased inflation on a variety of consumer items, the Biden administration also took aim at suspected price gouging by gasoline merchants and announced a release from the Strategic Petroleum Reserve.
OPEC+, which meets again on Feb. 2, agreed to decrease output by 10 million barrels per day in 2020 as demand fell.
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