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Biden ‘disappointed’ with OPEC+’s ‘shortsighted’ output cut

President Joe Biden is "disappointed" with the OPEC+ cartel's decision to slash oil production output and believes it will hurt the world economy, the White House said Wednesday. "The president is disappointed by the shortsighted decision by OPEC+," National Security Advisor Jake Sullivan and top economic advisor Brian Deese said in a statement. The supply…

ARLINGTON, VIRGINIA – SEPTEMBER 11: U.S. President Joe Biden delivers remarks at a ceremony commemorating the 21st anniversary of the crash of American Airlines Flight 77 into the Pentagon during the September 11th terrorist attacks at the National 9/11 Pentagon Memorial on September 11, 2022 in Arlington, Virginia. The nation is marking the twenty-first anniversary of the terror attacks of September 11, 2001, when the terrorist group al-Qaeda flew hijacked airplanes into the World Trade Center, Shanksville, PA, and the Pentagon, killing nearly 3,000 people. Anna Moneymaker/Getty Images/AFP (Photo by Anna Moneymaker / GETTY IMAGES NORTH AMERICA / Getty Images via AFP)

President Joe Biden is “disappointed” with the OPEC+ cartel’s decision to slash oil production output and believes it will hurt the world economy, the White House said Wednesday.

“The president is disappointed by the shortsighted decision by OPEC+,” National Security Advisor Jake Sullivan and top economic advisor Brian Deese said in a statement.

The supply cut will hit countries “already reeling” from high prices while “the global economy is dealing with the continued negative impact” of Russia’s attack on Ukraine, the statement said.

The decision by OPEC+, which came despite reports of frantic lobbying from Washington, puts Biden and his Democratic party in a bind by potentially kickstarting fuel price hikes just five weeks ahead of midterm elections where the Republicans hope to take control of Congress.

The statement said Biden was ordering another dip into the country’s Strategic Petroleum Reserve, with 10 million barrels set to be put on the market next month in an attempt to dampen prices rises.

However, those reserves are fast emptying out after record withdrawals ordered by the administration, starting back in March. The reserves are now at their lowest level since July 1984 and it is not clear when the administration plans to purchase a refill.

The next releases will continue “as appropriate to protect American consumers and promote energy security, and (Biden) is directing the secretary of energy to explore any additional responsible actions to continue increasing domestic production in the immediate term,” the statement said.

In addition, the administration will “consult with Congress on additional tools and authorities to reduce OPEC’s control over energy prices,” the statement said.

Along with supply chain hold-ups in the wake of the Covid-19 shutdowns, high fuel prices are to blame for helping push the highest inflation in the United States for four decades.

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