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Saturday, April 1, 2023

OPEC+ Rejects Biden’s Plea To Pump More Oil

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As widely expected, oil producers have completely ignored Biden’s pleas and/or demand for an output hike, and a panel of OPEC+ ministers recommended sticking to their current pace of gradual production increases.

After a brief video conference, the group’s Joint Ministerial Monitoring Committee (or JMMC), which oversees OPEC+ production cuts, recommended a 400,000 barrel-a-day supply increase for December, delegates said.

That’s a pace that major consumers say is too slow to sustain the post-Covid economic recovery, contributing to an increase in crude prices of about 30% since August.

OPEC+ will now consider the recommendation at a full ministerial meeting, where it is expected to endorse the recommendation.

According to Bloomberg, once the cartel rejects U.S. pleas to boost oil supply, “it could face a bare-knuckle fight with the White House, amid growing speculation that the U.S. could tap emergency crude stockpiles in an effort to drive down prices.”

The next OPEC+ meeting date is set for Dec 2 where the cartel  will likely ignore Biden’s pleas for more output again unless oil is trading in triple digits by then.

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