The White House continues to urge oil-producing countries to “do more” to support the global economic recovery, an official said Monday as crude oil prices hit a several-year high.
The official said the administration is closely monitoring the cost of oil and gasoline and is “using every means available to address anti-competitive practices in the US and global energy markets to ensure the credibility and sustainability of the energy market.”
According to the official, the White House has raised concerns with several member countries of the Organization of the Petroleum Exporting Countries, known as OPEC and their allies.
The price of crude oil is at a level not seen since 2018, while the price of crude oil in the US reached the highest levels not seen since 2014 due to a combination of factors. Demand for oil worldwide has grown faster than expected and high natural gas prices are causing some countries to produce energy from oil.
Meanwhile, OPEC has maintained the same level of supply since the start of the pandemic. At one point, it cut off more than 10 million barrels of daily supply from the market due to low demand. Since July, OPEC has agreed to increase production by 400,000 barrels per day to gradually eliminate cuts of 5.8 million barrels per day during the peak of the pandemic.
The production group, led by Saudi Arabia, has been wary of coronavirus outbreaks that hurt demand and the finances of member countries, which benefit from higher prices.
US oil production, which peaked at close to 13 million barrels per day at the end of 2019, remains well below that level even though daily fuel demand has returned to pre-pandemic levels./VOA
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