Oil and gas industry update
Sign up for myFT Daily Digest and be the first to learn about oil and gas industry news.
The White House called on OPEC to increase oil production in order to curb the high oil prices that Biden administration officials said “may damage the ongoing global recovery.”
Joe Biden’s national security adviser Jack Sullivan said in a statement on Wednesday that although OPEC and its allies “recently agreed Increase in production“This boost “will not completely offset the previous production cuts implemented by OPEC+ during the pandemic before 2022.”
“At a critical moment of the global recovery, this is not enough,” Sullivan added, stating that the United States “is in contact with relevant OPEC+ members on the importance of competitive markets in setting prices.”
As the U.S. economy reopened after the coronavirus-related lockdown, U.S. gasoline prices have soared along with the soaring demand for auto fuel. According to data from the Automobile Association AAA, the national average price of gasoline is US$3.19 per gallon, an increase of nearly 50% over the same period last year.
The highest national average price recorded in 2008 exceeded $4.10 per gallon.
Affected by this news, international oil prices fell by about 1%, Brent crude oil trading price was slightly lower than 70 US dollars per barrel, and the US benchmark West Texas Intermediate crude oil price was about 67.50 US dollars.
The White House intervention marked a sudden change in Donald Trump’s policy during the oil market crash last year, when he urged OPEC to raise prices to help US shale companies weather one of the worst market downturns in decades.
But the latest turning point is that the US government (including the Trump administration) often calls on the OPEC cartel to increase oil to lower the average gasoline price.
George HW Bush, Bill Clinton, and George W. Bush have all put pressure on producer groups to increase supplies during periods of rising gasoline prices or US military intervention in the Middle East.
Trump often tweeted during OPEC meetings, accusing the organization of “manipulating” oil prices and exploiting Americans. He reached an agreement with Saudi Arabia in 2018 to increase before he withdrew the United States from the nuclear agreement with Iran and imposes it on him. Oil production. Impose sanctions on its oil industry. He then relied on OPEC for the deepest production cut in history in 2020.
At the end of last year, OPEC production cuts and vaccine breakthroughs helped oil prices rise above US$70 per barrel, although analysts are increasingly worried that the return of the coronavirus may hinder the recovery of global oil demand.
OPEC+ Group, including the United Arab Emirates, Saudi Arabia, Russia, Iraq and Kuwait, last month Agreed to increase production by about 2 million barrels per day, or more than 2% of global demand, by the end of 2021, and to restore all supplies that were cut last year before the end of 2022.
OPEC declined to comment on Sullivan’s statement on Wednesday.
The White House on Wednesday also issued a letter from Brian Deese, director of the National Economic Council, requesting Lina KhanThe new chairman of the Federal Trade Commission called on the Federal Trade Commission to crack down on any collusion in the US gasoline market.
Deese urged the agency to “consider using all of its available tools to monitor the US gasoline market and address any illegal behavior that may cause consumer prices at gas stations to rise.”
“Although many factors affect the price of natural gas, the President wants to ensure that consumers do not pay more for natural gas because of anti-competitive or other illegal behavior,” he wrote.
The White House intervention was carried out a few hours later by the Democrats in the Senate Push over In the absence of Republican support, a party-lined $350 million budget resolution was passed by a vote of 50 to 49. Republicans accused Democrats of reckless spending, which they said pushed up prices for American consumers, including gas stations.
The latest data released by the U.S. Bureau of Labor Statistics on Wednesday showed that show The rise in consumer prices in the US in July remained at a 13-year high, and the CPI rose 5.4% year-on-year last month.
On Tuesday, 19 Republican senators signed a separate $1 trillion infrastructure spending bill, which is widely regarded as a major achievement of the Biden administration.