The decision by OPEC+ to significantly reduce daily oil production is a 'clear' sign that the bloc is siding with Russia amid a growing power rivalry with the West, the White House said Wednesday.
'It's clear that OPEC+ is aligning with Russia with today's announcement,' spokeswoman Karine Jean-Pierre told reporters aboard Air Force One. 'The global economy is responding to (Russian President Vladimir) Putin's war and so by making this decision, it is going to have an effect on low- and middle-income countries.'
The Organization of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, agreed Wednesday to cut production by 2 million barrels per day from the August 2022 required production levels, starting in November.
The cut is set to send global oil prices higher as the US prepares to hold its midterm elections Nov. 8.
US President Joe Biden 'is disappointed' by the decision 'while the global economy is dealing with the continued negative impact of Putin’s invasion of Ukraine,' his senior aides said shortly after the announcement.
'The President’s work here at home, and with allies around the world, has helped to bring down U.S. gas prices: since the beginning of the summer, gas prices are down $1.20 – and the most common price at gas stations today is $3.29/gallon,' National Security adviser Jake Sullivan and top economic adviser Brian Deese said in a statement.
To address the effects of the cuts on the domestic energy markets, Biden ordered the release of 10 million barrels from the Strategic Petroleum Reserve beginning in November.
The president will continue to direct releases as appropriate to protect American consumers and promote energy security, according to Deese and Sullivan.
By Michael Hernandez in Washington