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US President Joe Biden attempted on Monday to downplay the latest output cuts by the OPEC+ group of oil-producing nations.
“It’s not going to be as bad as you think,” Biden said during a trip to Minnesota in response to a reporter’s question on the decision by some OPEC+ countries to cut production by a combined 1.6 million barrels per day (bpd).
Meanwhile, US Treasury Secretary Janet Yellen said the decision by some member states of the Organization of the Petroleum Exporting Countries and their allies to cut oil production is “not positive” for global growth, calling it an “unconstructive act.”
“I think it’s a regrettable action that OPEC decided to take. I’m not sure yet just what the price impact will be,” Yellen told reporters Monday following an event at Yale University.
“I think we need to wait a little longer…to really assess that,” she added.
In a surprise move, OPEC+ announced Sunday that it will cut oil production by around 1.6 million barrels per day (bpd) beginning in May and running through the end of the year.
Saudi Arabia will cut 500,000 bpd, Iraq 211,000 bpd, the United Arab Emirates 144,000 bpd, Kuwait 128,000 bpd, Kazakhstan 78,000 bpd, Algeria 48,000 bpd and Oman 40,000 bpd, each country announced.
The move comes despite concerns that it will further fuel inflation and drive central banks to raise interest rates.
