The Biden administration promotes a “compromised solution” in the OPEC+ negotiations Reuters

WASHINGTON (Reuters)-A White House spokesperson said on Monday that the Biden administration is pushing for a “compromise solution” to the stalled OPEC + oil production negotiations.

After the United Arab Emirates rejected a proposal to extend production cuts for eight months, OPEC+ ministers cancelled these talks on Monday. Four OPEC+ sources told Reuters that no progress has been made in reaching an agreement.

A White House spokesperson said in a statement: “The United States is closely monitoring the OPEC+ negotiations and their impact on the global economy’s recovery from the COVID-19 pandemic.”

“We are not a party to these negotiations, but government officials have been in contact with relevant countries to urge a compromise solution to advance the proposed increase in production plan.”

Oil prices rose to their highest level since 2018, fueling inflation concerns. US President Joe Biden has made economic recovery from the recession triggered by the coronavirus pandemic a key priority for his administration.

Biden’s aides said on the condition of anonymity that stable oil market conditions are needed to promote economic recovery and achieve the government’s goal of providing affordable and reliable energy.

The international benchmark price was higher than US$77 per barrel on Monday, up 1.2% during the session.

OPEC+ united the Organization of Petroleum Exporting Countries with Russia and other large oil-producing countries. Last year, it agreed to cut production by nearly 10 million barrels per day, which is equivalent to about 10% of world production because of the pandemic. Restrictions have been gradually relaxed and are currently about 5.8 million barrels per day.

According to sources, the UAE on Friday accepted the proposal of Saudi Arabia and other OPEC+ member states to increase production by about 2 million barrels per day from August to December, but refused to reduce the remaining output from the current April. The end date was extended to the end of 2022 to adjust its current baseline production.