The United States has urged the Organization of Petroleum Exporting Countries (OPEC) and its allies like Russia to produce more oil.

Jake Sullivan, US President Joe Biden's security adviser, said the oil cartel's increase in oil production will not offset previous production cuts in the pandemic well into 2022.

At a “critical moment” in the recovery of the global economy, the expansion of subsidies is “simply not big enough”.

Christian Siedenbiedel

Editor in business.

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As in Germany, the price of gasoline in the United States has recently risen significantly and was a driver of inflation, which was 5.4 percent in July. The American administration apparently fears that rising energy prices could become an obstacle to economic recovery, some of which they are as a result. Sullivan said it was in talks with key OPEC members on the matter.

On the oil market, Sullivan's statements on Wednesday initially caused the oil price to decline. Apparently it was speculated that an expansion of the production could increase the oil supply. Later there was a countermovement. On Thursday, North Sea Brent oil cost 71.42 dollars a barrel (159 liter barrel) at times, after the price had already been significantly higher in July. American West Texas Intermediate (WTI) oil cost $ 69.16 a barrel at times.

Analysts speculated why the Americans would have to ask countries like Saudi Arabia and Russia to produce more oil in order to combat inflation and the rise in gasoline prices - and why they should not simply produce more oil themselves. "The request is informative in two ways," said Carsten Fritsch, Commerzbank oil analyst. "It shows that only OPEC and its allies currently have the ability to significantly expand the oil supply."

The cartel has "market power". At the same time it becomes clear that the American shale oil producers have lost their previous role as so-called "swing producers", that is, they no longer tip the scales for changes in the oil price. "Otherwise the American government could have asked its own oil producers to expand oil production," says Fritsch. It remains to be seen whether OPEC and its allies will comply with the United States' request. The Americans have no direct influence, but an expansion of production could of course also be in the interests of the oil states.

Meanwhile, there were rather cautious reports on oil demand on Thursday. The International Energy Agency (IEA) lowered its forecast for global demand for crude oil in its monthly report due to the recent development of the corona crisis. "The spread of the delta variant of the virus could derail the recovery in demand," said the monthly report. The IEA expects global demand averaging 96.2 million barrels per day in the current year, compared to 96.4 million barrels previously.