The US President Joe Biden’s administration on Wednesday urged OPEC+ to boost its crude oil production to prevent fuel prices from spiking, which can threaten the global economic recovery. The request underscores Washington’s willingness to cooperate with major oil producers despite its push to lead the global fight against climate change. According to Biden’s national security adviser Jake Sullivan, Saudi Arabia and other producers are pumping not enough oil at a critical moment in the world’s economic recovery.
OPEC+ agreed to cut crude oil supply by nearly 10 million bpd in 2020 as energy demand collapsed due to the COVID-19 pandemic. As of July 2021, the alliance had gradually tapered the curbs to about 5.8 million bpd. Last month, it agreed to relax the curb again by 400,000 bpd every month starting from August.
The international benchmark Brent crude futures rose by more than 1% to above $71 per barrel on Wednesday. That has fallen from this year’s peak of more than $77 per barrel in July but still represents a rise of almost a third since the start of the year. In the US, retail gasoline prices are hovering around $3.18 recently, up more than a dollar from a year earlier, according to the American Automobile Association.
