Submitted by Sunsmiling t3_xx4al1 in wallstreetbets
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The White House angrily hit back at OPEC+ after the oil-producing group announced its biggest output cut since 2020, slamming what President Joe Biden's administration called a "short-sighted" decision.
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Energy analysts believe that sharp production cuts by key OPEC member and U.S. ally Saudi Arabia could backfire, especially as Biden hints that Congress will soon seek to rein in the Middle East-dominated bloc’s impact on energy prices.
OPEC and non-OPEC allies, commonly known as OPEC+, agreed on Wednesday to cut oil production by 2 million barrels a day from November. The move is aimed at spurring a recovery in crude prices, which have fallen to around $80 a barrel from more than $120 in early June.
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International benchmark Brent crude futures traded at $93.55 a barrel in London trading on Thursday, up about 0.2%. Meanwhile, U.S. West Texas Intermediate crude futures were at $87.81, up nearly 0.1%.
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The United States has repeatedly called on energy coalitions including Russia to increase output to help the global economy and lower fuel prices ahead of next month's midterm elections.
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The White House said in a statement that Biden was "disappointed by OPEC+'s short-sighted decision to cut production quotas as the global economy grapples with the continued negative impact of Putin's invasion of Ukraine."
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"In light of today's action, the Biden administration will also consult with Congress on additional tools and mandates to reduce OPEC's control over energy prices," the White House said.
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There is nothing Biden can do to change the outcome, and the best thing to do is lift sanctions on Russian oil, not Biden's hubris. Inflation may have a chance to come back.
What do you think?