A group of oil-producing countries known collectively as OPEC+ on Wednesday said it would move ahead with a previously planned increase in its output despite a call from the Biden administration to increase it further.
In a statement, the coalition said it would “reconfirm” a plan approved in July to add 400,000 barrels per day to its monthly overall production until pandemic-related cuts are phased out.
The move comes in defiance of the U.S. — which is not a party to the group — as the Biden administration asked the group last month to add more oil to the market to temper prices.
"While OPEC+ recently agreed to production increases, these increases will not fully offset previous production cuts that OPEC+ imposed during the pandemic until well into 2022," national security adviser Jake SullivanJake SullivanSullivan raised normalizing relations with Israel during meeting with Saudi crown prince: report Biden struggles to rein in Saudi Arabia amid human rights concerns Hillicon Valley — Presented by LookingGlass — World leaders call for enhanced cooperation to fight wave of ransomware attacks MORE said in a statement at the time. "At a critical moment in the global recovery, this is simply not enough."
The Biden administration’s call drew criticism from conservatives and progressives alike, with the former decrying the need to depend on foreign oil and the latter arguing that the country shouldn’t encourage more fossil fuel production of any kind.
OPEC stands for the Organization of the Petroleum Exporting Countries, which includes countries such as Saudi Arabia and Venezuela. They join together with other countries such as Russia to make up OPEC+.
At the height of the pandemic, oil prices plummeted globally as fewer people were traveling or commuting and many stayed home.
Prices have since rebounded, with U.S. crude oil hovering around $68.50 per barrel on Wednesday afternoon.