BIDEN’S PLEAS FOR OPEC TO INCREASE OIL PRODUCTION REMAINS UNSUCCESSFUL

The powerful Middle Eastern oil cartel, the Organization of the Petroleum Exporting Countries (OPEC), stuck to its planned incremental production increase, shrugging off calls from the West for greater supply.

The cartel (OPEC) and the OPEC+, which includes Russia, will stick to their plan to raise production by a modest 423,000 barrels per day in June, multiple delegates told Reuters, despite pleas from the Biden administration.

The White House has repeatedly called upon OPEC+ to boost its oil output over the last year as supply chains have been snarled amid the COVID-19 pandemic recovery. Jake Sullivan, White House national security adviser, said in August of 2021, “OPEC’s production increases were simply not enough.”

A European Union announcement that the bloc would implement a complete ban on Russian oil imports by the end of 2022, coincided with the report that the ban on Russian oil imports will likely cause global oil prices to surge. The global Brent oil benchmark increased 2.75% to $108.85 a barrel while the U.S. WTI benchmark spiked 2.71% to $106.29 per barrel on Wednesday.

“OPEC+ will make decisions as it always has, and we continue to be in touch with relevant OPEC+ partners on energy security and supply,” a senior Biden administration official told reporters in late March after the cartel stuck to a limited production boost.

The Wall Street Journal reported in April that leaders from both Saudi Arabia and the United Arab Emirates have reportedly turned down requests for a phone call with President Joe Biden, and Saudi Arabian Crown Prince Mohammed bin Salman reportedly yelled at Sullivan during an in-person conversation about oil. U.S. relations with key OPEC members have faced multiple setbacks in recent months, according to media reports.

Russia’s invasion of Ukraine has disrupted global energy markets, leading to higher prices worldwide. The average price of gasoline hit $4.23 a gallon on Wednesday, remaining near its all time high of more than $4.30 per gallon set in April, according to Energy Information Administration data.

Reuters reported, an internal OPEC document forecasted global oil demand to increase by 3.67 million barrels a day this year, more than an 11% decrease from previous projections.

We appreciate our friends at the Daily Caller for content in this article.

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