US President Joe Biden announced on Sunday that his administration had other plans to deal with high oil prices. It came after OPEC rejected the calls for additional supply, more specifically when the US asked to deviate from its plan of ramping up production by 400,000 barrels per day. Back then, oil rose to around $ 80.
"I'm not anticipating that OPEC would respond," Biden said. "They are going to pump some more oil. Whether they pump enough oil is a different thing."
The president firmly said his administration will discuss the ongoing issue.
Meanwhile, US Energy Secretary Jennifer Granholm said the Energy Information Administration predicted that gasoline prices would drop to $ 3.05 a gallon in December. She said it is probably not the level for strategic reserve to come into play, but warned that projections could change.
Granholm also noted that President Biden may tap on the reserves located in the coasts of Texas and Louisiana.
Going back to prices, volatility may surge in the coming weeks because of the open disagreements between OPEC and the United States. Goldman Sachs said the market is still short on supply, and a potential release of US strategic reserves could only provide temporary relief and even backfire next year.
UBS said the same thing and gave a forecast that Brent will trade around $ 90 a barrel in the coming months.
