(OPEC) reportedly plan to reject a petition from the Biden administration to pump more oil into the world market;
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The White House released a statement by national security advisor Jake Sullivan on Wednesday calling on OPEC to boost oil production.
- The White House statement appeared to have an immediate impact on oil prices. As The Wall Street Journal reports: “Brent crude, the international oil benchmark, fell 0.8% to $70.04 a barrel after the White House announcement. Oil prices have experienced volatility in recent days due to concerns over the Delta variant of Covid-19.”
- OPEC+ is an international cartel of major oil producers which includes the 13-nation Organization of Petroleum Exporting Countries (OPEC) and 10 other countries. The cartel came together in 2016 when OPEC, led by Saudi Arabia, struck an agreement with a group of non-OPEC countries led by Russia to limit oil production with the goal of influencing the global price of crude oil.
- The Biden administration’s overture to the cartel comes after his administration cracked down on oil and gas infrastructure projects that could have boosted oil supply and fuel production in the United States. Instead, the White House is attempting to push the United States to adopt more green energy technologies, such as electric cars.