The Hill reported Monday that OPEC (Organization of the Petroleum Exporting Countries) will be decreasing its production in October in response to declining oil prices.
The article reports:
Oil-producing alliance OPEC+ announced on Monday it will slightly lower oil production in October, eliminating the 100,000 barrel per day increase that began this month.
OPEC leaders made the decision after gathering for a meeting, where they noted the 100,000 barrel per day increase was only intended for September. OPEC produces around 28 million barrels per day.
In researching this article, I came across the following chart from oilprice.com:
Two of the reasons for the increase under President Obama were the use of fracking and the fact that the drilling was occurring on private land. President Trump was still dealing with a Congress that blocked some of his plans to increase American energy production (despite the fact that under President Trump we did achieve energy independence).
Note that the chart reflects changes–not total barrels. Under President Trump, crude oil production hit 10.038 million barrels per day (per The Western Journal). Do you think that level of production would help alleviate the price hikes that are coming because of the OPEC move to decrease oil production?
The article at The Hill continues:
The price for a crude barrel of West Texas Intermediate (WTI) oil climbed 3 percent after the announcement, reaching $90 per barrel, while Brent crude was also up 3 percent to $96 per barrel.
President Biden traveled to Saudi Arabia, the second largest OPEC member nation, over the summer as high gas prices beleaguered Americans and sunk his approval ratings.
After Biden met with Crown Prince Mohammed bin Salman and fist-bumped the Saudi leader, OPEC announced a mostly symbolic increase of 100,000 barrels per day for September.
Energy independence would stabilize oil prices for Americans and the ability to export oil would also fight inflation and improve the American economy.