Biden Faces Nightmare as OPEC Introduces New Production Cuts

Energy experts mocked President Biden for his lack of options to control oil prices after the decision of energy-producing countries to reduce oil supply by two million barrels per day.

On Wednesday, the Organization of Petroleum Exporting Countries (OPEC) and its allies, combinedly known as OPEC+, decided to cut off oil production by two million barrels per day to maximize profits in the oil market.

OPEC Countries Disregard All Requests of Biden

Right after OPEC’s decision, President Biden announced the release of 10 million barrels of more oil from US strategic reserves in November.

Biden’s decision to tap strategic oil reserves came at a time when the US was already releasing one million barrels of oil daily from April to September to mitigate the impacts of the Russia-Ukraine war.

As Biden released 180 million barrels of oil in the six months, now the US oil reserves are standing at their lowest level in the last 40 years.

Energy experts suggested Biden could have avoided global embarrassment by turning towards the US local oil and gas industry, which was ignored due to the green energy agenda of Democrats.

The US Oil & Gas Association tweeted OPEC ditched America and the strategic reserves are nosediving. In such a case, Biden could have used domestic oil production, which he should not have abandoned in the first place, the tweet added.

Since assuming the presidency, Biden maintained a rocky relationship with the US oil industry, as he canceled the Keystone XL pipeline project on his very first day in office.

These progressive tendencies of Biden urged oil-producing countries to exploit America by controlling the global oil output. Earlier this year, Biden visited Saudi Arabia and requested Crown Prince Mohammad Bin Salman to increase oil production.

Two and a half months after Biden’s Middle East visit, the OPEC countries have preferred not to even maintain the existing oil production. 

A New Wave of Inflation to Hit America

As OPEC introduces new production cuts, the consequences of the supply side crisis will impact worldwide consumers at the gas stations.

This would eventually bring a new wave of inflation, which was supposed to decline after peaking in August. Meanwhile, the White House slammed OPEC+ for reducing petroleum production.

According to a joint statement by the US National Security Adviser, Jake Sullivan, and NEC Director Brian Deese, the world is already suffering from the consequences of the Russian invasion of Ukraine. Biden is disappointed with the short-sighted decision of the OPEC+ countries.

Despite Biden’s concerns, Saudi Energy Minister Abdulaziz bin Salman claimed OPEC is reducing production due to the rising interest rates in western nations, which is impacting global oil business opportunities.

Recently, oil prices dropped to $80 per barrel, compared to $120 per barrel earlier this year amid the fears of a global recession. This eventually stashed the profits for oil-producing countries.

This article appeared in TheDailyBeat and has been published here with permission.