- OPEC+ agreed to reduce oil production by 2 million barrels per day
- Move may disproportionately affect low- and middle-income countries
- The United States is working to improve its energy security by relying more on American-made and American-produced clean energy and energy technologies
The White House stated that OPEC+ decision to reduce production quotas is short-sighted, given that the global economy is still reeling from the effects of Putin’s invasion of Ukraine and OPEC has aligned with Russia.
If OPEC’s decision has a significant price impact, it will disproportionately affect low- and middle-income countries. Biden’s efforts have resulted in lower gas prices in the United States. Gas prices have dropped nearly $1.20 since the beginning of the summer. In United States the most common gas station price is $3.29 per gallon. US will further utilize additional 10 million barrels from 180 million barrel release, ordered by the President earlier in March, from the Strategic Petroleum Reserve
The administration will also consult with Congress on additional tools and authorities to weaken OPEC’s grip on energy prices.
On Wednesday, October 5, 2022, the 45th Meeting of the Joint Ministerial Monitoring Committee (JMMC) and the 33rd OPEC and non-OPEC Ministerial Meeting were held in person at the OPEC Secretariat in Vienna, Austria.
The Declaration of Cooperation was extended until December 31, 2023, at the meeting.
Participating countries (OPEC+) agreed to reduce oil production by 2 million barrels per day at the meeting. Production cuts will be implemented by OPEC and non-OPEC participating countries beginning in November 2022.
Meetings of the Joint Ministerial Monitoring Committee (JMMC) will be held every two months.
In accordance with the regular OPEC schedule, an OPEC and non-OPEC Ministerial Meeting (ONOMM) will be held every six months.
The next OPEC and non-OPEC Ministerial Meeting is scheduled for December 4, 2022.
Biden administration is working to reduce inflation. With the passage of the Inflation Reduction Act, the United States is now poised to make large investment in accelerating the clean energy transition in history. The United States is working to improve its energy security by relying more on American-made and American-produced clean energy and energy technologies.
Staff Galactik Views