Oil prices fell on Wednesday after the White House called on OPEC and its allies to increase oil production to support the global recovery from the pandemic.
Futures contracts for West Texas Intermediate crude fell by more than 1% to about $67.44 per barrel. European benchmark Brent crude also slipped by more than 1% to about $69.85 per barrel. In recent weeks, both contracts traded at or above $70 per barrel.
Daily Reuters reported Wednesday that oil prices fell after the White House stated that OPEC+ must increase production.
National Security Advisor Jake Sullivan stated that “competitive energy markets” will guarantee reliable and stable supplies of energy. A statement obtained by Daily Reuters.
In July, the group agreed to increase production by 400,000 barrels a day. However, this would still leave output at levels well below those of pre-pandemic. OPEC+ reduced production by 10,000,000 barrels per day between 2020 and 2021. As demand fell sharply, U.S. producers also reduced their production.
According to the White House, July’s agreement is “simply insufficient.”
As the economy has been reopened, gas prices in the U.S. have increased over the past few months. The Biden administration has also asked the Federal Trade Commission for assistance in monitoring the domestic market for illegal activity that might be contributing to rising prices.
According to AAA, Tuesday’s national average for a gallon was $3.186, an increase of just over $1.