OPEC and its allies agreed at a meeting on Thursday to stick to plans to raise oil output by 400,000 barrels per day (bpd) from December, despite calls from the United States for extra supply to cool rising prices. This was reported by the Voice of America.
Top OPEC producer Saudi Arabia has dismissed calls for speedier oil supply increases from the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, citing economic headwinds.
According to OPEC+ sources, the U.S. has enough opportunities to increase its own oil production if it believes that the world economy needs more oil. Sources report that Saudi Arabia and Russia are increasingly confident that higher prices will not lead to a rapid increase in shale gas production in the United States.
OPEC+ sources said the United States has plenty of capacity to raise production itself if it believes the world's economy needs more energy. Sources have said Saudi Arabia and Russia are becoming more confident that the higher prices will not elicit a fast increase in output by the U.S. shale gas industry.
The White House said Washington would consider a full range of tools at its disposal to guarantee access to affordable energy.
All oil producers suffered a drop in income during the COVID-19 pandemic and as demand recovers with the global economy it has allowed them to rebuild their balance sheets. OPEC+ supply restraint has underpinned a rally that has pushed global benchmark Brent crude to a three-year high of $86.70.
U.S. President Joe Biden had on Saturday urged major G20 energy-producing countries with spare capacity to boost production to ensure a stronger global economic recovery. His statement is part of a broad effort by the White House to pressure OPEC and its allies to increase supply.
"OPEC+ seems unwilling to use the capacity and power it has now at this critical moment of global recovery for countries around the world," a White House spokesperson said on Thursday.
"The President believes Americans should have access to affordable energy, including at the pump, and has directed us to continue monitoring the markets and be prepared to use all tools as needed", the spokesperson said.
The world's largest oil producer, the United States, which is not part of OPEC+, saw its production fall steeply in 2020 and production has since recovered much slower than anticipated.
OPEC+ will meet again on December 2, 2021.