U.S. Calls On OPEC, Allies To Pump More Oil

US President Joe Biden's administration on Wednesday (Thursday, August 12, 2021, in Manila) urged OPEC and its allies to boost oil output to tackle rising gasoline prices that they see as a threat to the global economic recovery, Trevor Hunnicutt and Jeff Mason reported for Reuters.

Photo Insert: Offshore oil and gas exploration plays a key a role in meeting the world's oil supply demand and stabilizing prices.

The request reflects the White House's willingness to engage major world oil producers for more supply to help industry and consumers, even as it seeks the mantle of global leadership in the fight against climate change and discourages drilling at home.

Biden's national security adviser Jake Sullivan criticized big drilling nations, including Saudi Arabia, for what he said were insufficient crude production levels in the aftermath of the global COVID-19 pandemic.

"At a critical moment in the global recovery, this is simply not enough," Sullivan said in a statement.

The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, had implemented a record output cut of 10 million barrels per day, about 10% of world demand, as global energy demand slumped during the pandemic.

But it has gradually raised output since, with the cut eased to about 5.8 million bpd as of July.

OPEC+ agreed in July to boost output by 400,000 bpd a month starting in August until the rest of the 5.8 million bpd cut is phased out. OPEC+ is scheduled to hold another meeting on Sept. 1 to review the situation.

Biden later told reporters on Wednesday that the US had made clear to OPEC that "the production cuts made during the pandemic should be reversed" as the global economy recovers "in order to lower prices for consumers."

WEEKLY FEATURE : PAL READY TO SOAR WITH PANDEMIC