OPEC+ Agrees to Sharp Oil Output Cut in Blow to Biden

The OPEC+ alliance of crude-producing countries has agreed deep cuts to oil output, providing a likely floor to falling prices and delivering a blow to President Joe Biden’s pleas for the cartel to boost production to help quell soaring inflation.

The Organization of Petroleum Exporting Countries (OPEC) and its oil-producing allies, known as OPEC+, agreed to cut production by 2 million barrels per day (bpd), with the decision coming at an Oct. 5 meeting in Vienna, Austria.

The cuts came as little surprise to markets, which had been expecting the cartel to slash output even as the White House reportedly launched a last-ditch effort to persuade OPEC not to go ahead with the cuts.

Draft White House talking points to the U.S. Treasury Department, which were reported by CNN, described the expected cuts as a “total disaster” and that they could be seen as a “hostile act.”

At a press conference following OPEC’s meeting, Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman dismissed suggestions from reporters that the cuts could be seen as “belligerent,” arguing instead that the decision is meant to provide stability to oil markets.

Crude prices jumped on news of OPEC’s cuts. Brent crude and West Texas Intermediate (WTI) futures were up 2.1 percent and 1.96 percent respectively, as of 11:00 a.m. EST, on Oct. 5. Brent was trading at $93.61 per barrel, while WTI was trading at $88.05 per barrel.

‘Reliance On Foreign Oil’

Sen. John Kennedy (R-La.) said that the Biden administration’s dependence on foreign oil supply, rather than boosting domestic output, means OPEC’s decision will mean American drivers will face higher costs at the pump.

“OPEC is taking advantage of Pres. Biden’s reliance on foreign oil and slashing supply, which will drive up prices that Louisianians pay. It’s as simple and sad as that,” he said in

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