Biden Administration Questions OPEC+ Decision
The Biden administration has disapproved of the surprise oil output cuts announced on Sunday by Saudi Arabia and other OPEC+ countries. A spokesperson for the National Security Council stated that the cuts were not advisable, given the current market uncertainty.
Additional Cuts Aim to Support Market Stability
OPEC+ countries announced additional cuts of 1.16 million barrels per day to support market stability. Some analysts believe these cuts could help extend the crude oil price rally from the 15-month lows in mid-March. The producers had already agreed to reduce output by 2 million barrels a day until the end of the year.
U.S. Focuses on Consumer Prices, Not Barrels
The National Security Council spokesperson emphasized that the U.S. is focused on consumer prices, not barrel production. Gasoline prices have dropped significantly since last year, falling more than $1.50 per gallon from their peak last summer. The U.S. will continue collaborating with producers and consumers to ensure that energy markets support economic growth and lower prices for American consumers.
U.S. Gasoline Prices Down 30% from Record High
According to AAA, the U.S. national average price for gasoline on Sunday was about $3.50 per gallon. This represents a 30% decrease from the record high of just over $5 per gallon in June last year.