The White House warns oil-producing countries against impeding the current global economic recovery

The White House has warned oil-producing countries against impeding the current global economic recovery, and White House deputy spokeswoman Karen-Jean-Pierre said Washington will use all means to ensure that.

The spokeswoman pointed out that OPEC and its allies (OPEC Plus) have the ability to put more oil on the market and influence gasoline prices, while the United States operates under a system in which oil-producing companies make their decisions on supplies.

Last Sunday, US President Joe Biden, on the sidelines of the Group of Twenty summit in Rome, expressed his regret that “Russia, Saudi Arabia and other major producers refraining from pumping more oil (…) is not fair,” directly targeting the “OPEC Plus” alliance.

maintain production

The “OPEC Plus” group maintained its plans to moderately increase production by 400,000 barrels per day until December, despite calls from the United States for more supplies to curb the rise in prices.

And the Organization of Petroleum Exporting Countries, OPEC, announced – in a statement published after a summit that brought together its 13 members and their ten allies within the framework of the “OPEC Plus” alliance – that the monthly production of the alliance “will be raised to 400,000 barrels per day for the month of December.”

And the 23 ministers, who met via video technology, chose to adhere to the roadmap they set on July 18.

This strategy, which is in the interest of the producing countries, currently leaves more than 4 million barrels underground every day.

The market, which has been volatile since the beginning of the week, swung towards the red zone at around 17:30 GMT, as the price of a barrel of West Texas Intermediate crude decreased by 0.70% to $ 80.29, as well as the price of Brent crude by 0.70% to $ 81.72.

The Organization of the Petroleum Exporting Countries announced on its website that the new meeting of the “OPEC Plus” alliance will be held on the 2nd of next December.

The White House was quick to express its dissatisfaction with the “OPEC Plus” decision regarding production. A spokesman for the US National Security Council said, “It appears that the OPEC Plus coalition does not want to use the capacity and influence that it has at this crucial moment in the global recovery for countries all over the world.”

Last week, OPEC Secretary-General Muhammad Barkindo stressed “the need to be careful and pay attention to the constantly evolving market situation.”

“OPEC Plus” is currently referring to the risk factors surrounding demand in order to justify continuing its cautious policy, noting new peaks in the spread of the Corona epidemic (Covid-19) recorded in Russia and China.

Also, Russian Deputy Prime Minister Alexander Novak stressed – during a press conference held after the summit – that Corona still poses a threat, while continuing its impact on oil demand.

But a large number of market watchers are skeptical about the ability of many members of the organization to increase production, as the Corona epidemic has caused delays in the maintenance of drilling facilities.

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