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Washington, oil producers collaborate under OPEC+ umbrella

OPEC+

The United States supported the decision of the OPEC+ alliance, which is to return to raising daily production of crude by 400,000 barrels per day, starting from next February.

The White House said it appreciates the continued coordination between the United States, Saudi Arabia, the United Arab Emirates and other major oil producers under the umbrella of the OPEC+ alliance to counter price pressures.

The American welcome came after the decision of the coalition of 23 countries, led by Riyadh and Moscow, to return to the plan to raise production, which was suspended last month after the appearance of the coronavirus Omicron variant.

OPEC+ alliance

Reuters quoted a spokesman for the White House National Security Council, that the United States welcomes the decision of major oil producers to adhere to their plans to increase crude production, and called for close coordination with Saudi Arabia and the UAE in particular.

The decision not to increase production further helped push up oil prices.

Crude prices rose above $80 on Tuesday, an increase of 2% during the new year.

A spokesman, whose identity was not revealed by Reuters, said that the OPEC+’s decision will support the recovery of the global economy.

During the past months, the administration of President Joe Biden criticized similar increases in production by OPEC+ as insufficient, and said that the alliance is disrupting the economic recovery from the recession caused by the pandemic.

The Biden administration, under pressure from skyrocketing inflation on a range of consumer goods, also announced the withdrawal of its Strategic Petroleum Reserve.

The members of OPEC + alliance, which will meet on February 2, reduced 10 million barrels per day of production in 2020 as demand fell.

The “coalition” refused to respond to US pressure, and said that the current lifting plan is sufficient to restore stability to the market by the end of 2022.

Oil production

It is worth noting that OPEC+ are studying whether to proceed with the previously planned monthly production increase by 400,000 barrels per day, or stop those plans temporarily to assess the market after the drop in prices.

Earlier, the Wall Street Journal reported that Saudi Arabia and Russia plan to stop the previously agreed monthly increases of 400,000 barrels of oil per day.

OPEC delegates said that this step came to compensate for the new supplies approved by some countries led by the United States, so Riyadh and Moscow are now considering stopping the group’s monthly collective increase.

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