A White House official on Monday called the announcement by the Saudi-led OPEC+ energy alliance that it’s cutting oil production by an additional 1.15 million barrels a day “inadvisable.”


What You Need To Know

  • A White House official on Monday called the announcement by the Saudi-led OPEC+ energy alliance that it’s cutting oil production by an additional 1.15 million barrels a day “inadvisable"

  • But the initial reaction from John Kirby, spokesman for the White House National Security Council, struck a softer tone than the tough talk that emanated from the White House in October after OPEC announced a production cut of 2 million barrels a day

  • When that happened, President Joe Biden vowed there would be “consequences” for Saudi Arabia’s actions, and Kirby said Biden would reevaluate the United States’ partnership with the nation

  • Kevin Book, managing director of Clearview Energy Partners LLC, said the production cuts alone could push U.S. gasoline prices up roughly 26 centers per gallon

But the initial reaction from John Kirby, spokesman for the White House National Security Council, struck a softer tone than the tough talk that emanated from the White House in October after OPEC announced a production cut of 2 million barrels a day.

When that happened, President Joe Biden vowed there would be “consequences” for Saudi Arabia’s actions, and Kirby said Biden would reevaluate the United States’ partnership with the nation.

“At this moment given market uncertainty and we made that clear,” Kirby told reporters Monday. “But I'll tell you we're focused on moving ahead here on prices for American consumers not barrels.”

He would not discuss conversations U.S. officials might have had with Saudi officials.

But Kirby said market conditions have improved since last year. As of Monday afternoon, the price of crude oil was $80.50 a barrel — up nearly $5 since Friday but down significantly from last June’s peak of more than $120.

Still, American drivers could feel the impact of OPEC’s decision. Kevin Book, managing director of Clearview Energy Partners LLC, said the production cuts alone could push U.S. gasoline prices up roughly 26 centers per gallon. That would be in addition to the usual increase that comes when refineries change the gasoline blend during the summer driving season. The Energy Department calculates the seasonal increase at an average of 32 cents per gallon, Book said.

The average price of gallon of regular gas in the U.S. on Monday was $3.51 a gallon, according to the auto club AAA.

Kirby said the Biden administration will “continue to work with all the producers and consumers to ensure that energy markets support economic growth and lower prices for American consumers.”

Shortly after, White House principal deputy press secretary Olivia Dalton reiterated some of the same points Kirby made: that the OPEC decision was not made solely by Saudi Arabia, that the move was inadvisable and that the Biden administration is primarily focused on minimizing the impact on American consumers.

Saudi Arabia’s support for last year’s production cut was widely seen as a betrayal of the U.S. after Biden, abandoning his campaign promise to make the country a “pariah” over its human rights record and the 2018 killing of Washington Post columnist Jamal Khashoggi, visited there and urged Crown Prince Mohammed bin Salman to pump more oil to relieve gas prices at home.

But little came of the White House’s strong rhetoric follow last year’s production cuts. Pressed Tuesday about what consequences Saudi Arabia felt, Kirby claimed Congress limited arm sales and “there were tough conversations.”

Sen. Richard Blumenthal, D-Conn., and Rep. Ro Khanna, D-Calif., introduced separate bills last October that would have halted arms sales to Saudi Arabia for one year, but neither bill received a vote.

Last month, Sens. Chris Murphy, D-Conn., and Mike Lee, R-Utah, introduced a resolution that would require the State Department to produce a report on Saudi Arabia’s human rights record and conduct in Yemen. The results could potentially lead to Congress voting to end U.S. security assistance to Saudi Arabia. The Senate Foreign Relations Committee must first consider the measure.

As for the United States’ reevaluation of its relationship with Saudi Arabia, Kirby said Tuesday the U.S. is constantly reassessing all its bilateral partnerships, and “Saudi Arabia is no different.” He added that he never promised a report on the reevaluation process.

“We're not always going to agree with everything that Saudi Arabia does or says any more than they're always going to agree with everything that we do or say,” Kirby said. “But that doesn't take away from the fact that it is a strategic partnership. We have many things that we need to continue to work together on.”

The Saudi Energy Ministry described the productions cuts, which will begin in May and last until the end of the year, as a “precautionary measure” aimed at stabilizing the oil market.

Saudi Arabia announced the biggest cut among OPEC members at 500,000 barrels per day. 

Iraq said it would reduce oil output by 211,000 barrels per day, the United Arab Emirates by 144,000, Kuwait by 128,000, Kazakhstan by 78,000, Algeria by 48,000 and Oman by 40,000.

Russia’s Deputy Prime Minister Alexander Novak, meanwhile, said Moscow would extend a voluntary cut of 500,000 until the end of the year, according to remarks carried by the state news agency Tass.

Higher oil prices would help fill Russian President Vladimir Putin’s coffers as his country wages war on Ukraine and force Americans and others to pay even more at the pump amid worldwide inflation.

Republicans on Monday blamed Biden’s energy policies for leaving U.S. gas prices vulnerable to spikes caused by foreign decision makers.

“The announcement by OPEC to reduce oil output is a direct result of weak leadership by the Biden Administration and will likely lead to higher gas prices for all Americans,” tweeted Sen. Thom Tillis, R-N.C., “We would not be in this position had Biden not pushed his short-sighted anti-domestic energy agenda.”

“We cannot rely on adversaries like OPEC and Russia to meet our energy needs,” Rep. Cathy McMorris Rodgers, R-Wash., wrote on Twitter.

The Republican-led House last week passed a bill that would expand mining and fossil fuel production in the U.S. and repealing provisions in last year’s Inflation Reduction Act that aim to boost clean energy production and reduce oil and gas emissions.

Majority Leader Chuck Leader, D-N.Y., called the legislation “dead on arrival” in the Senate.

The Associated Press contributed to this report.

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