Fakoyejo OlalekanNigeria, and other members of the Organisation of the Petroleum Exporting Countries Plus (OPEC+) have been slammed by the United States government over cut in production level.
The United States government said the members of OPEC+ are “shortsighted” and has threatened to develop tools and authorities to reduce OPEC’s control over crude prices.
US is furious at the OPEC and non-OPEC members, who make up OPEC+, for reaching an agreement to cut production output by two million barrels per day in order to raise falling crude oil prices.
OPEC+ cut is expected to take effect from November 2022. And while countries like Nigeria and other countries that haven’t been able to meet their quota are expected to reduce production by one million barrels per day, Saudi Arabia, Kuwait and other nations that met their quota would adhere to the new agreement.
This doesn’t sit well with the United States government, which wants oil price to drop further, despite the cost of the commodity depreciating from $120 per barrel in July to $88.92 as at the time of filing this report.
In a statement released in response, Joe Biden’s administration stated that the US government is “disappointed by the shortsighted decision by OPEC+ to cut production quotas while the global economy is dealing with the continued negative impact of Putin’s invasion of Ukraine.”
It added that, “the Biden Administration will also consult with Congress on additional tools and authorities to reduce OPEC’s control over energy prices.”
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