US sees OPEC+ increase as ‘small’ but optimistic about impact

This content was published on August 03, 2022 – 18:45

Washington, Aug 3 (EFE).- The United States considers the increase in oil production announced by OPEC+ to be “weak” but remains optimistic about the impact this and other factors could have on gasoline prices, he said. Efe the special envoy for energy, Amos J. Hochstein.

Hochstein thus reacted to the decision announced by the oil alliance OPEC+, led by Saudi Arabia and Russia, to increase its production by 0.22% (100,000 barrels more per day) for September, in what is one of the lowest increases in its history.

“It’s a small amount, true. But when you see the results and the markets, you’re happy that the prices are going down,” said Hochstein, who coordinates US energy policy at the State Department.

Thus, he pointed out that after the announcement of OPEC+, oil prices on the market fell by 3%.

However, he argued, the Joe Biden administration understands that gasoline prices are not just about OPEC+, but also about the need for increased production from European and American companies.

“We want the private sector in the United States and Europe, and the OPEC countries, to continue to increase their investments and to increase the production of gas and oil. So that in the short and medium term, we can have lower prices,” he said.

Hochstein also said the administration remains committed to accelerating the transition to renewable energy with investments, for example, in electric vehicles.

The OPEC+ decision was adopted during the first monthly teleconference of the group’s 23 countries since Biden’s trip in mid-July to Saudi Arabia, the world’s largest exporter of crude oil and which the president has asked to increase production at prices lower.

In her daily press conference, White House spokeswoman Karine Jean-Pierre defended that it was “important” to go to Saudi Arabia not only because of the oil but also because of the announcements made for further integrating Israel into the region and extending the truce of the war in Yemen.

Jean-Pierre also assured that since Biden announced his trip to Saudi Arabia, prices have already started to drop.

The price of Texas Intermediate Oil (WTI), the benchmark indicator in the United States, rose from 108 dollars a barrel a month ago to 91 today.

Meanwhile, the average price of a gallon of gasoline (3.78 liters) has fallen from an all-time high set in June of $5 to the current $4.1, according to the United States Automobile Association (AAA, for its English acronym).

To drive down prices, Biden also in March ordered the release of 180 million barrels of oil from US strategic reserves over the next six months. EFE


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