US Treasury criticizes OPEC+’s unproductive decision to reduce production

US Treasury Secretary Janet Yellen called the decision by the OPEC+ group to cut oil production “unconstructive”, increasing uncertainty about global economic growth and burdening consumers in light of high inflation.

Yellen told reporters on Monday: “I think this is an unfortunate move that OPEC has decided to take. I don’t know yet how this will affect prices. I think we need to wait a bit and really appreciate it.”

She pointed out that the decline in gasoline prices from last year’s record levels helped bring down inflation, and that a change in that trend would be detrimental.

“This is clearly not positive for global growth. This adds uncertainty and burden at a time when inflation is already high,” she added.

Regarding the price ceiling set by Western countries on Russian oil, Yellen said that the OPEC + decision to cut production will not affect the level of the ceiling.

And she thought the price ceiling was “working,” noting that it led to a sharp decline in the price of Russian oil, adding that she does not see a corresponding revision of the price ceiling at this time.

It is noteworthy that oil prices rose by 6% on Monday after the OPEC+ group, which includes non-members of the Organization of the Petroleum Exporting Countries (OPEC), announced its plans to cut oil production.

Source: Reuters.