OPEC’s controversial decision to slash the production of oil by two million barrels per day has led the Biden administration to examine how to reduce rising gas prices.
White House Press Secretary Karine Jean-Pierre said of President Biden’s plans, “We believe the decision that OPEC+ made last week was a mistake and it was short sighted….the President has talked about recalibrating, readjusting our relationship with Saudi Arabia.”
According to AAA, Nevada’s average gas prices are currently $5.29, up from $4.94 a month ago.
According to Center Square, the narrowing of potential new sources of oil under President Biden’s administration has led to significant jumps in gas prices. “We are all living the consequence: outrageously high prices and growing shortages,” said Daniel Turner, executive director of the energy workers advocacy group, Power the Future.
The federal government has asked Saudi Arabia to delay the oil cuts for one more month, but Saudi officials chalked the request as an attempt to keep voters from thinking about gas prices as midterms approach, according to the Wall Street Journal.
Following the significant cut in oil production last week, OPEC announced that it was reducing its forecasts for oil demand by 460,000 barrels per day, citing a dangerously unpredictable world economy as its reason for doing so, according to MarketWatch.
The current levels of U.S. oil reserves in the Strategic Petroleum Reserve stocks have been depleted by more than 33% in the past 12 months.
Politico reports that President Biden has plans to further tap into American oil reserves, with the idea to authorize the release of up to 15 million more barrels before the end of the year. This authorization is a direct response to OPEC’s recent decision to slash production but is also consistent with a long-term struggle to drive down the price of oil.
