Keep pressing! If OPEC+ does not take additional measures to increase production, Biden will take action

At a press conference after the G20 leaders' summit, Biden argued that oil-producing countries were underproducing and continued to put pressure
on OPEC+.

On Oct.
31, when asked how the U.
S.
would respond if OPEC+ didn't ramp up production, Biden said:

"We're thinking about what to do, but I'm reluctant to reveal (specific plans)
until we actually put them into action.
"

According to Bloomberg, a senior Biden administration official said on Saturday that U.
S.
officials are using the opportunity of the pre- and post-summit meetings to discuss with other major energy consumers how to pressure OPEC+ to increase production
.

At the same time, the official also noted that although the United States hopes to see an increase in crude oil production in the short term, it will continue to make the transition
to renewable energy in the long term.

Demand side: Consumers are under constant pressure

Since the beginning of this year, energy prices have remained high, and major energy consumers have been pressuring oil-producing countries to increase production
.

After the 19th OPEC+ ministerial meeting on July 18, the White House said that the agreement on oil production reached by OPEC+ in July was far from enough
during the critical period of global economic recovery.

After oil prices rose sharply in September, White House press secretary Jen Psaki said the oil issue was "worth paying attention to" and the United States began to increase pressure on OPEC+ to increase production
.

On October 18, Japanese Prime Minister Fumio Kishida said the Japanese government was monitoring price trends in the market to assess their impact
on the domestic industry.
On the same day, he put pressure on OPEC+ producers to increase output
amid recent price increases.

On the supply side: Oil producers are reluctant to increase production

However, oil-producing countries, which have suffered from oversupply, are reluctant to significantly increase production capacity
.

Wall Street saw that the reason why OPEC is reluctant to increase production despite the pressure of US President Biden to increase production is because of the fear of the resurgence of the epidemic and the fear
of oil prices stopping rising and falling.

In 2018, Brent crude fell from over $85 in October to below $50 at the end of the year, to a new low in the past year, and U.
S.
oil also fell below
$43.
This has led to a heightened fiscal imbalance in OPEC countries that rely heavily on oil revenues, forcing OPEC to join forces to cut production in search of an increase
in crude prices.