WASHINGTON, Oct.11 (Reuters) – The White House is upholding calls for oil-producing countries to “do more” to support the global economic recovery, an official said on Monday, as crude prices hit multi-year highs. Read more
The official said the administration was closely monitoring the cost of oil and gasoline and “used all the tools at our disposal to tackle anti-competitive practices in the US and global energy markets to ensure reliable energy markets and stable “.
He raised the concern to a higher level with several members of the Organization of the Petroleum Exporting Countries and their allies, known as OPEC +, according to the official.
The benchmark Brent index is at a level not seen since 2018, while U.S. crude prices have hit all-time highs since 2014 due to a combination of factors. Global demand has rebounded faster than expected, and high natural gas prices are prompting some countries to switch from electricity generation to oil-based gas.
Meanwhile, OPEC + has maintained supply limits since the start of the pandemic. At one point, it cut more than 10 million barrels of daily supply from the market due to weak demand. In July, it agreed to increase production by 400,000 barrels per day (bpd) to phase out the 5.8 million bpd of cuts.
The Saudi Arabia-led production group has been wary of subsequent coronavirus outbreaks sapping demand and attentive to the finances of members, who benefit from higher prices. Read more
Oil production in the United States, which peaked at nearly 13 million bpd at the end of 2019, remains well below that level, even as daily fuel demand has rebounded to pre-pandemic levels.
Reporting by Trevor Hunnicutt Editing by Mark Potter
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