Oil prices fell immediately after the White House called on the Organization of the Petroleum Exporting Countries and its allies to increase oil production to support the global economic recovery.
Futures contracts for West Texas Intermediate crude fell by more than 1% to $67.44 U.S. per barrel. European benchmark Brent crude also slipped by more than 1% to $69.85 U.S. per barrel. Both contracts have traded above $70 U.S. a barrel in recent weeks.
OPEC agreed in July to increase production by 400,000 barrels per day, but that would leave output well below pre-pandemic levels. OPEC cut production by 10 million barrels per day in the middle of 2020 at the height of the global pandemic.
The White House said in a written statement that OPEC’s July deal is "simply not enough."
In recent months, consumer gas prices have climbed in the U.S. as the economy has reopened. The Biden administration is also asking the Federal Trade Commission (FTC) to monitor the domestic market for potential illegal activity that could be adding to rising energy prices.
