US pushes OPEC+ not to cut oil production

The US is pushing OPEC+ countries not to go for potential deep oil production cuts as President Joe Biden tries to prevent US gasoline prices from rising, a source familiar with the matter told Reuters.

According to the source, Washington is arguing to OPEC+ countries that economic fundamentals do not support production cuts. OPEC+, which includes Saudi Arabia and Russia, is working on cuts exceeding 1 million barrels per day, sources told Reuters. The cuts could lead to a rebound in oil prices. The White House declined to comment. "We will not comment on any OPEC action until OPEC takes action," said National Security Council spokeswoman Adrienne Watson. "We are always talking to all producers and consumers, including of course OPEC+ partners. This has been the case for decades and through bipartisan administrations, including this one. We have been clear that energy supply must meet demand to support economic growth and lower prices for consumers around the world, and we will continue to talk to our partners about this." Biden has grappled with gasoline prices all year. After a spike, prices gradually fell and his administration touted it as a major success. A spike in prices could hurt Democratic prospects in the Congressional midterm elections on November 8. The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, appear ready to cut production when they meet on Wednesday. The move would squeeze supply in an oil market that energy company executives and analysts say is already tight due to healthy demand, lack of investment and supply issues. Source: investing.com Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!