Gas Prices Rise Again After OPEC Cuts Oil Production, Angers Biden

by Yehudit Garmaise

Gas prices will likely start to climb again, now that Saudi Arabian, Russian, and other leaders of oil producing countries agreed on Oct. 5 to drastically cut oil production by two million barrels a day, the NYTimes reported.

The Saudi and Russian officials met as leaders of Organization of the Petroleum Exporting Countries, which is now called OPEC Plus, to include Russia and perhaps serve its political interests and its invasion of Ukraine.

OPEC Plus members said they made their decision to reduce oil production to “stabilize prices,” but the eastern oil producers are likely hoping to punish President Joe Biden and European leaders who have urged oil providers to produce more oil to lower prices at the pump, while objecting to Russia’s war on Ukraine.

By reducing production of the rich oil stores of Russia and Saudi Arabia, President Putin hopes to inflict economic punishment on the West by decreasing supply, and therefore causing gas prices to spike in the U.S. and Europe.

Since Feb. 24, American and European leaders, who have opposed Putin’s invasion of Ukraine, have sought to wage war economically, but not by sending in troops.

“President Biden is disappointed by the shortsighted decision by OPEC Plus to cut production quotas while the global economy is dealing with the continued negative impact of Putin’s invasion of Ukraine,” said Brian Deese, the director of the National Economic Council.

Just after OPEC Plus announced it would launch its first large decrease in oil production in two years, the price of Brent crude oil, the international benchmark for oil prices, immediately rose more than 1.5% after dropping all summer.

Two days later, one gallon of regular gas in New Jersey on Friday cost $3.53, which was nine cents higher than the previous week, the American Automotive Association (AAA) Mid-Atlantic reported.

Drivers were paying $3.24 a gallon on average a year ago at this time, the AAA said.