Members of the Organization of the Petroleum Exporting Countries (OPEC) announced that it would keep cuts to the production of oil in the months leading up to the November election in the United States. While the effort may not be directly intended to hurt the reelection chances of President Joe Biden, the decision may have significant impacts on his chances.
The OPEC nations announced that they would continue oil production cuts into the end of 2025. Overall, the decision will keep oil cuts of two million barrels per day in place.
The overall decision by Saudi Arabia and other members of the oil cartel will likely keep fuel prices high.
CHART: OPEC+ Cuts Explained: pic.twitter.com/Qip1X1ySg9
— Nayla Razzouk (@nayrazz) June 2, 2024
In addition to the cuts put in place by the cartel, individual members also cut oil production by a further 2.2 million barrels per day. This decision was taken by several members such as Saudi Arabia. The country did not comment on whether or not it would extend these reductions.
OPEC’s influence has declined in recent years. The United States has significantly increased its production of oil and natural gas, which blunted the ability for foreign countries to impact American supplies.
The United States now produces the most oil and natural gas at any point in its history.
While traditional fuel production remains high, many conservatives have criticized Biden for multiple decisions restricting the production or distribution of oil and natural gas. In addition, Biden White House plans to replace traditionally-fueled vehicles with electric versions was also panned by Republicans.
Furthermore, former President Donald Trump vowed to expand oil and natural gas production, especially amid relatively high prices. The former president argued that the country was energy-independent during his time in office.
Trump has taken credit for the sharp increase in oil and natural gas production, calling for the United States to further expand its energy production to meet its future needs.
The relatively high fuel prices could impact the 2024 election, especially as many Americans are also facing the pressures of high inflation. All of this could spell negative news for Biden in November.
