The powerful consortium of oil producers, including Saudi Arabia and Russia, will reduce their outputs somewhere between 500,000 and two million barrels per day (bpd) beginning in November 2022. OPEC+ earlier reduced its output by a record 10 million bpd back in early 2020, when demand slumped because of the pandemic.
The Oct. 5 decision did not sit well with the White House, which denounced the move in a statement. It expressed Biden's disappointment with "the shortsighted decision by OPEC+ to cut production quotas while the global economy is dealing with the continued negative impact of [Russian President Vladimir] Putin's invasion of Ukraine." (Related: Oil prices set to skyrocket again after Saudis, OPEC, rebuff Biden and announce production cuts.)
"In light of today's action, the Biden administration will also consult with Congress on additional tools and authorities to reduce OPEC's control over energy prices," the statement said, adding that the cartel's decision to reduce production was "a reminder of why it is so critical that the U.S. reduce its reliance on foreign sources of fossil fuels."
Moreover, the White House press release also mentioned that Biden already directed the Department of Energy to release another 10 million barrels from the Strategic Petroleum Reserve in November.
Back in July 2022, Biden visited Saudi Arabia and was even pictured greeting Crown Prince Mohammed bin Salman, the Saudi prime minister. His visit sought to convince Saudi Arabia to pump more oil to "help the global economy," in time for the U.S. midterm elections in November. However, Biden failed to convince the Saudi royals to churn out more petroleum to lower prices.
The Oct. 5 decision by OPEC+ to slash production also incensed Biden's Democratic allies, believing that the move was clearly politically motivated. White House Press Secretary Karine Jean-Pierre said: "It is clear that OPEC+ is aligning with Russia with today's announcement."
Speaking to CNBC, Connecticut Sen. Chris Murphy said the oil-producing cartel made a mistake in arriving at such a decision. "I think it's time for a wholesale re-evaluation of the U.S.'s alliance with Saudi Arabia," he remarked.
Meanwhile, New Jersey Rep. Tom Malinowski quickly introduced legislation mandating the U.S. military to pull out troops in Saudi Arabia and the United Arab Emirates.
"If you want to side with Putin, then ask Putin to defend you," the congressman tweeted. "Good luck with that."
Speaking to reporters at the White House, Biden reiterated that his trip to Saudi Arabia was not essentially about oil. "The trip was about the Middle East, about Israel and … rationalization of positions," he said.
"We're looking at what alternatives we may have. There are a lot of alternatives. We haven't made up our minds yet," the president added, dubbing the OPEC+ decision as a "disappointment."
FuelSupply.news has more stories about the OPEC+ consortium's petroleum production.
Watch the below video that talks about Putin and OPEC joining forces to reject Biden's demand of increased oil production.
This video is from the Conservative Politics & NWO channel on Brighteon.com.