OPEC+ Headed for a Clash With Biden As Key Members Reject Call For Output Increases

Source: Bloomberg.

OPEC+ is on a path for a clash with the United States as more members rejected President Joe Biden’s push for the group to raise oil production faster and help to cut gasoline prices. CL1! up +1.03%

• On Monday, Kuwait stated that the cartel should hold on to its plan to expand output gradually as oil markets were well-balanced. That followed supporting statements from core members, including Iraq, Angola, Nigeria, and Algeria.
• The Organization of Petroleum Exporting Countries and its close allies are scheduled to meet on Thursday with increased pressure from oil consumers as prices soar towards $85 a barrel.
• The U.S., India, Japan, and other importers are pushing for a campaign to push the cartel to ease last year’s pandemic-driven supply curbs more quickly.
• Biden stated that the aspect that Russia and Saudi Arabia and other major oil producers would not pump additional oil is not right.
• But, U.S. President Biden fell short of stating how he would react if OPEC+ does not change approach, with analysts projecting that the U.S. might sell some of its strategic petroleum reserves.