London Daily

Focus on the big picture.
Wednesday, Jul 02, 2025

US 'Has Made Clear' to OPEC That Agreement on Reduced Oil Output Must Be Reconsidered, Biden Says

US 'Has Made Clear' to OPEC That Agreement on Reduced Oil Output Must Be Reconsidered, Biden Says

The 13-member Organization of the Petroleum Exporting Countries (OPEC) and its OPEC+ partners, which include other major oil producers such as Russia, agreed to reduce crude oil production last year in the wake of last year's dramatic economic downturn associated with the Covid crisis. Last month, OPEC+ agreed to begin gradually boosting output.

Washington has stressed to the world's major oil producing nations that the production cuts agreed to last year should be scrapped as nations begin to recover and their demand for energy grows, President Joe Biden has said.

"We also made clear to OPEC, the major oil exporting nations of the world, that the production cuts made during the pandemic should be reversed as the global economy recovers in order to lower prices for consumers," Biden said, delivering remarks on his 'Build Back Better' agenda in Washington on Wednesday.

The president spoke about putting pressure on OPEC while addressing his administration's strategy of "taking action" on gas prices, suggesting that although fuel prices "are lower than they were earlier in this decade...they're still high enough to create a pinch on working families."

Biden also indicated that his director of the national economic council had asked the chair of the federal trade commission "to use every available tool to monitor the US gasoline market" for any potential "illegal conduct that might be contributing to price increases at the pump while the price of oil is going down."

Earlier in the day, National Security Advisor Jake Sullivan issued a statement in which he said that high gas prices, "if left unchecked, risk harming the ongoing global recovery," and indicated that crude prices are higher now than they were before the start of the coronavirus-associated crisis.

"While OPEC+ recently agreed to production increases, these increases will not fully offset previous production cuts that OPEC+ imposed during the pandemic until well into 2022. At a critical moment in the global recovery, this is simply not enough," Sullivan suggested.

"Although we are not a party to OPEC, the United States will always speak to international partners regarding issues of significance that affect our national economic and security affairs, in public and private," the NSA added. Sullivan noted that Washington was now "engaging with relevant OPEC+ members on the importance of competitive markets in setting prices." He did not mention specifically which countries US officials were speaking to.

Earlier Wednesday, a source from an unnamed nation's OPEC+ delegation told Sputnik that the oil-producing bloc had not yet discussed Washington's demands for increased output, but added that consultations on the matter would not be ruled out.

Agreement on Cuts to Last Through 2022


Last month, OPEC+ formally agreed to keep the oil production cut deal reached in the spring of 2020 in place until the end of 2022, allowing for production to be increased by 400,000 barrels per day (bpd) every month starting in August until the currently agreed upon total of 5.8 million bpd in cuts is exhausted. OPEC+ officials plan to meet in December to "assess market developments and participating countries' performance," and have also agreed to continue monthly meetings to "assess market conditions" and production adjustments.

OPEC (which includes Saudi Arabia, Algeria, Angola, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, the Republic of the Congo, the United Arab Emirates and Venezuela) and its ten major oil-producing partners constituting OPEC+ (Russia, Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Sudan and South Sudan) began cooperating in determining crude oil demand in 2016, ostensibly in a bid to stabilize both prices and output.

In early 2020, Saudi Arabia began a brief crude price war against other producers after its efforts to ram through a major cut in output was rejected by other OPEC+ partners, chiefly Russia. The conflict led to a historic glut which saw demand drop through the floor and futures temporarily dip into negative territory, but was resolved after producers reached a compromise solution on necessary cuts in April 2020. The United States, which is not a member of OPEC+, thanked Russia and Saudi Arabia for coming to an agreement, and helped the oil producing-bloc bring a reluctant Mexico into the agreement on cuts.

Crude prices began a gradual recovery late last year.


Newsletter

Related Articles

0:00
0:00
Close
Poland Implements Border Checks Amid Growing Migration Tensions
Political Dispute Escalates Between Trump and Musk
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
US Senate Votes to Remove AI Regulation Moratorium from Domestic Policy Bill
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
Jury Deliberations in Diddy Trial Yield Partial Verdict in Serious Criminal Charges
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
King Charles Plans Significant Role for Prince Harry in Coronation
Two Chinese Nationals Arrested for Espionage Activities Against U.S. Navy
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
Trump Administration Considers Withdrawal of Funding for Hospitals Providing Gender Treatment to Minors
Texas Enacts Law Allowing Gold and Silver Transactions
China Unveils Miniature Insect-Like Surveillance Drone
OpenAI Secures Multimillion-Dollar AI Contracts with Pentagon, India, and Grab
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Elon Musk Critiques Senate Budget Proposal Over Job Losses and Strategic Risks
Los Angeles Riots ended with Federal Investigations into Funding
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Education Secretary Announces Overhaul of Complaints System Amid Rising Parental Grievances
Massive Anti-Government Protests Erupt in Belgrade
Trump Ends Trade Talks with Canada Over Digital Services Tax
UK Government Softens Welfare Reform Plans Amid Labour Party Rebellion
Labour Faces Rebellion Over Disability Benefit Reforms Ahead of Key Vote
Jeff Bezos and Lauren Sánchez Host Lavish Wedding in Venice Amid Protests
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
North Korea to Open New Beach Resort to Boost Tourism Economy
UK Labour Party Faces Internal Tensions Over Welfare Reforms
Andrew Cuomo Hints at Potential November Comeback Amid Democratic Primary Results
Curtis Sliwa Champions His Vision for New York City Amid Rising Crime Concerns
Federal Reserve Proposes Changes to Capital Rule Affecting Major Banks
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Trump Escalates Criticism of Media Over Iran Strike Coverage
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
Big Four Accounting Firms Fined in Exam Cheating Scandal
NATO Members Agree to 5% Defense Spending Target by 2035
Australia's Star Casino Secures $195 Million Rescue Package Amid Challenges
UK to Enhance Nuclear Capabilities with Acquisition of F-35A Fighter Jets
Russian Shadow Payments via Cryptocurrency Reach $9 Billion
Explosions Rock Doha as Iranian Missiles Target Qatar
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
×