U.S. President Joe Biden expressed disappointment on Oct. 6 over announced plans by OPEC+ nations to cut oil output and he and officials said the United States was looking at all possible alternatives to keep prices from rising.
Despite that move, Biden said he did not regret his summer trip to Saudi Arabia, which he said was focused on the Middle East.
OPEC+ agreed to steep oil production cuts on Oct. 5, curbing supply in an already tight market and raising the possibility of higher gasoline prices right before the U.S. midterm elections in November, when Biden’s Democrats are defending their control of the House of Representatives and the Senate.
“We’re looking at what alternatives we may have,” Biden told reporters at the White House when asked about the OPEC decision.
“There’s a lot of alternatives. We haven’t made up our minds yet,” he said.
Biden this week called on his administration and Congress to explore ways to boost U.S. energy production and reduce the cartel’s control over energy prices. Some of his options include releasing more oil from the Strategic Petroleum Reserve (SPR) or exploring a curb on energy exports by U.S. companies.
Biden went to Saudi Arabia in July but ended the trip without a deal for the OPEC+ group to help bring down gasoline prices, a key political problem for him at home.
Asked if he regretted his decision to go to Saudi Arabia, Biden said that trip was not essentially about oil.
“The trip was about the Middle East and about Israel and ... rationalization of positions,” he said. “But it is a disappointment,” he added of the OPEC+ decision, and indicates problems.
RELATED:
OPEC+ Oil Output Cut Ahead of Winter Fans Inflation Concerns
Why Russia Stands to Gain Most from OPEC+ Oil Output Cuts
The White House has sought to take credit for a decline in gasoline prices in recent months after Biden started a series of oil releases from the SPR. High inflation has been a political albatross to the president, and the dip in prices a key victory.
The OPEC+ decision could threaten that momentum and benefit oil-exporter Russia, which is suffering under U.S.-led sanctions.
“We believe it’s unnecessary and unwarranted at a period where, if you look at the global energy picture, oil picture, the lack of supply continues to be a significant challenge,” Biden’s economic adviser, Brian Deese, told reporters on Air Force One on Thursday.
“What the president has directed us, and it continues to be the case, is to take nothing off of the table,” Deese said when asked whether the U.S. could limit energy exports.
“We will be assessing and consulting closely with Congress on a range of issues on the back end of this,” he said.
Recommended Reading
Natural Gas Storage Moves Closer to Average
2024-10-17 - Producers put 76 Bcf of natural gas into U.S. storage—a little less than market expectations—as the traditional storage season nears an end and prices continue to fall.
Marcellus Waiting to Exhale But Held Back by Regional, Economic Factors
2024-11-06 - After years of exploitation as one of the country’s first unconventional shale plays, the Marcellus still has plenty of natural gas for producers, even if regional and economic factors have kept much of it bottled up.
EIA Reports Natural Gas Storage Jumped 58 Bcf
2024-09-19 - The weekly storage report, released Sept. 19, showed a 58 Bcf increase from the week before, missing consensus market expectations of 53 Bcf, according to East Daley Analytics.
EPA Gives OK to Texas GulfLink Deepwater Port
2024-11-04 - Sentinel Midstream’s Texas GulfLink project is one of several proposals for an offshore oil terminal in the Gulf.
Kissler: Wildcards That Could Impact Oil, Gas Prices in 2025
2024-11-26 - Geopolitics and weather top the list of trends that will determine the direction of oil and gas.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.