The White House maintains its appeals for countries that produce Petroleum “Do more” to support the global economic recovery, an official said on Monday, as oil prices reach multi-year highs.
One official said the government was closely monitoring the cost of oil and gasoline and “using every tool at our disposal to address anti-competitive practices in the US and global energy markets to ensure reliable and stable energy markets.”
This has raised high-level concerns with several members of the Organization of Petroleum Exporting Countries and their allies, known as OPEC+, according to the official.
The Brent benchmark is at a level not seen since 2018, while US oil prices have touched highs not hit since 2014 due to a combination of factors. Global demand has recovered faster than anticipated, and high natural gas prices are spurring some nations to switch power generation from gas to oil.
Meanwhile, OPEC+ has maintained supply limits since the beginning of the pandemic. At one point, it cut more than 10 million barrels a day from the market due to weak demand. In July, the organization agreed to increase production by 400,000 barrels per day (bpd) to eliminate ongoing cuts of 5.8 million bpd.
The producer group, led by Saudi Arabia, is watching out for subsequent outbreaks of coronaviruses, undermining demand and also watching the finances of members, who benefit from higher prices.
US oil production, which peaked at close to 13 million bpd at the end of 2019, remains far below that level, although daily fuel demand has recovered to pre-pandemic levels.