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US slams Nigeria, other OPEC+ members over decision to raise oil price

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European buyers' apathy leaves 20 Nigerian oil cargoes unsold

The United States government has expressed disappointment in the decision of the Organisation of the Petroleum Exporting Countries Plus (OPEC+) to cut production output.

Ripples Nigeria had reported that the OPEC+, which includes OPEC members and non-OPEC nations, cut production output by two million barrels per day starting from November 2022.

The cut is expected to support falling crude oil price, which is down to $89.06 as at the time of filing this report, from the high of $120 per barrel recorded in the first month of the third quarter.

US had been encouraging improved production rather than cut, in a bid to reduce cost of crude oil, which was as low as $20 in the first half of 2020, during the COVID-19 pandemic and lockdown.

Hike in price of the commodity and the impact of Ukraine and Russian war have driven inflation across the world, with countries posting historical high rates.

OPEC+, however, didn’t disagree with the US government’s view, and instead proceeded with the cut, prompting Joe Biden’s administration to slam the oil cartel, CNBC reported on Thursday.

Read also: Nigeria’s crude oil production averaged 1.183m b/d in July – OPEC

Biden’s administration said they would begin to find ways to reduce OPEC+ influence on crude prices, calling their cut decision “shortsighted”.

The statement from the US reads, “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.”

US government further stated that, “the Biden Administration will also consult with Congress on additional tools and authorities to reduce OPEC’s control over energy prices.”

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