The recent surprise oil output cuts by Saudi Arabia and other OPEC+ countries have been deemed not advisable by the Biden administration due to market uncertainty. A spokesperson for the National Security Council stated that they have made their stance clear on the matter.
While the cuts of an additional 1.16 million barrels per day were intended to promote market stability and have been viewed positively by some analysts for their role in extending the rally of crude oil prices from 15-month lows seen in March, the administration does not believe that they are the right course of action at this time.
It is important to note that the producers had already agreed to cuts of 2 million barrels per day until the end of this year.
“We’re focused on prices for American consumers, not barrels, and prices have come down significantly since last year, more than $1.50 per gallon from their peak last summer,” the NSC spokesperson said.
They pointed out that prices have already dropped significantly since last year, down by more than $1.50 per gallon from their peak last summer. The administration is committed to working with all producers and consumers to ensure that energy markets support economic growth and lower prices for American consumers.
According to AAA, the U.S. national average price for gasoline was about $3.50 a gallon on Sunday, which is a decrease of around 30% from the record high of just over $5 a gallon that was reached in June of last year.
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