OPEC cuts oil production, prompting angry response from White House

The Organization of the Petroleum Exporting Countries (OPEC) and its unofficial members announced a decision this week to cut oil production down by 2 million barrels a day starting next month, prompting outcry from the White House.

The decision to decrease production of crude oil comes after several months of declining global oil prices, which have delighted drivers but caused oil-producing nations’ profits to sink.

OPEC’s official member countries, along with some unofficial members – the largest of which being Russia – claim they made the controversial decision due to “uncertainty that surrounds the global economic and oil market outlooks.”

The White House responded to the decision on Thursday, releasing a statement saying President Biden is “disappointed” with OPEC’s decision and says it is ill-timed “while the global economy is dealing with the continued negative impact of Putin’s invasion of Ukraine.”

The White House says the President will “consult with Congress on additional tools and authorities to reduce OPEC’s control over energy prices.”

The timing of OPEC’s decision is tricky for the United States with less than a month before the November midterm elections that will decide which party controls the US Senate and House of Representatives in the coming years.

Democrats were boosted in recent weeks by falling gas prices after months of record-high spending at the pump. 

However, prices may not jump to their previous highs, according to experts. Chief Global Strategist for LPL Financial told CNBC, “An average cut of 2 million barrels a day should push gasoline prices higher, but not at a pace that would bring back prices to the $5 a gallon that led to the Biden administration draining supplies from the Strategic Petroleum Reserve.” 

The White House highlighted in its statement that the decision to cut global production should serve as a reminder of how important it is for the US to “reduce its reliance on foreign sources of fossil fuels.”

The statement went on to say, “With the passage of the Inflation Reduction Act, the U.S. is now poised to make the most significant investment ever in accelerating the clean energy transition while increasing energy security, by increasing our reliance on American-made and American-produced clean energy and energy technologies.”