The Biden Administration has come into action. It is getting proactive and aims to control the rising gasoline prices at the pump that are hurting the general public.
The White House has said that leading representatives of OPEC+ nations were contacted in order to determine a way out. The Biden administration wants the global oil supply to be pumped up by OPEC+ members and its allies at a time when the global economy is on the road to recovery.
‘Simply Not Enough’
White House says that the current agreement which states to increase supply by 400,000 BPD starting from August until 2022 in place at OPEC+ meeting is “simply not enough” as it is a “critical moment in the global recovery.”
After Crude saw a slump during the coronavirus outbreak across the world, the prices of the fossil are back at pre-pandemic levels. The national average for gas galloon in America was $3.186 this week as compared to $3.143 last month. The price has increased by $1 as compared to last year.
Rising Gasoline Prices
The national average went north of $3 in May for the first time ever in six years. During the peak of the pandemic, OPEC+ nations agreed to cut production to support the recovery of the global crude oil market. The United States oil producers also put a threshold on production.
With the demand back in the market and OPEC still holding production of about 6 million BPD that is sending Crude prices to new highs compared to 2020, the White House wishes to see a change.
But as per the Energy Information Administration, U.S. production also averaged 11.2 million bpd in May which is down from the pre-pandemic high above 13 million.
Stable Energy Prices
“We are engaging with relevant OPEC+ members on the importance of competitive markets in setting prices,” National Security Advisor Jake Sullivan said in a statement seen by business portal CNBC.
“Competitive energy markets will ensure reliable and stable energy supplies, and OPEC+ must do more to support the recovery.”