White House: OPEC + risks endangering the recovery

• OPEC, there is an agreement: loosened production cuts, pact extended until the end of 2022

• Oil, OPEC: demand down by 6.85 barrels per day in 2020

• Petroleum.

  Agreement with OPEC + for production cut

Share

04 November 2021Opec Plus risks endangering the global economic recovery by refusing to accelerate increases in oil production. This is what the White House says, underlining that the United States is ready to use all the tools necessary to lower prices.

"Opec Plus seems

for countries around the world. From our point of view, the global recovery should not be jeopardized by a misalignment between supply and demand ", notes the White House, which harshly criticizes the decision of the organization of oil producers and exporters to leave the pace unchanged. monthly increase in its production

A spokesman for the National Security Council added that the Biden administration will consider using all tools at its disposal to strengthen the resilience of the energy market. 

Opec Plus has decided to reconfirm the rate of increase in production to 400 thousand barrels per day for the month of December 2021. Despite the pressing invitations of the market - but also of the White House - the members of the Opec + group - gathered in videoconference - have firmly rejected the hypothesis of increasing oil production to alleviate the energy crisis that has pushed up prices and the reheating of inflation globally.

In the meeting, the members of the Organization, in the extended formulation that includes Russia and other crude oil producing countries as well as the countries that have joined the OPEC, confirmed their

, but also to "provide clarity to the market" at a time characterized by "extreme volatility and instability" and to "continue to adopt the proactive and transparent approach that has guaranteed stability to the oil markets" and therefore want to stick to the plan to increase production by only 400,000 barrels per day in December. The economic cartel has deferred to "other parts of the energy sector outside the oil markets" the responsibility for the "extreme volatility and instability" that is causing energy prices to soar.

Opec Plus reduced oil production at the outbreak of the pandemic due to the slump in demand and subsequently slowly made up for the cuts. In light of the current fundamentals of the oil market and the consensus on its prospects, the 22nd Opec Plus summit resolved "to reaffirm the decision of the tenth OPec and non-OPec ministerial meeting of 12 April 2020 and further approved at subsequent meetings, including the 19th OPEC and non-OPEC ministerial meeting of 18 July 2021 ". The meeting also resolved to reiterate "the fundamental importance of adhering to full compliance and the compensation mechanism, taking advantage of the extension of the compensation period until the end of December 2021".

The next OPEC and non-OPEC meeting will be held on 2 December 2021.