Biden 'disappointed' by OPEC+ output cut, hints at potential new U.S. oil releases
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President Biden is "disappointed by the shortsighted decision by OPEC+ to cut production quotas while the global economy is dealing with the continued negative impact of Putin's invasion of Ukraine," a White House statement said Wednesday.
Biden also will consult with Congress on ways to "reduce OPEC's control over energy prices," will continue to direct Strategic Petroleum Reserves releases "as appropriate to protect American consumers and promote energy security."
OPEC+ agreed Wednesday to cut production by 2M bbl/day, the group's biggest cut since 2020, as it seeks to halt a slide in oil prices.
The risk of further strain to U.S. relations with Saudi Arabia follows Biden's summer trip to meet Crown Prince Mohammed bin Salman, when he said the kingdom would "take additional steps" to increase oil supplies.
Some members of Congress have seized on higher gasoline and oil prices to push legislation that would allow the U.S. government to sue OPEC for manipulating the energy market.
Energy (NYSEARCA:XLE) easily leads the day's S&P sector standings, as WTI November crude oil +1.3% to $87.70/bbl., following the OPEC decision and U.S. data revealed a second straight weekly decline in crude supplies.
Ten of Wednesday's top 15 S&P gainers are in the oil and gas group: (NYSE:SLB) +6.4%, (XOM) +4.3%, (HAL) +3.3%, (PSX) +2.9%, (PXD) +2.8%, (BKR) +2.4%, (FANG) +2.4%, (HES) +2.3%, (APA) +2.2%, (MRO) +1.8%.
ETFs: (NYSEARCA:USO), (UCO), (SCO), (USL), (DBO), (USOI), (NRGU)