US Energy Secretary Says OPEC Cartel Responsible for Sharp Oil Price Surge

▲Jennifer Granholm, U.S. Secretary of Energy [Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Jennifer Granholm, U.S. Secretary of Energy, recently criticized the sharp rise in oil prices, attributing it to the cartel of the Organization of the Petroleum Exporting Countries (OPEC).

According to Bloomberg News on the 31st (local time), Secretary Granholm made these remarks during an appearance on the U.S. NBC broadcast that day.

She said, "Oil prices are based on the global oil market, and that market is controlled by a cartel called OPEC," adding, "OPEC controls more than 50% of oil supply and over 90% of oil reserves."

She continued, "Therefore, that cartel has more decision-making power over the current situation," sharply criticizing the group.

This statement is interpreted as pressure to increase production as the meeting where OPEC and other oil-producing countries decide on crude oil production is just four days away.

Bloomberg News noted that Secretary Granholm’s remarks came while President Joe Biden was attending the G20 summit.

President Biden stated in Rome, Italy, where the G20 summit was held, that it is not right for major oil-producing countries such as Russia and Saudi Arabia not to increase production.

[Image source=Reuters Yonhap News]

Regarding whether the U.S. would respond if OPEC does not take action, she took a cautious stance, saying, "I hesitate to speak about what we are considering before implementing it."

OPEC did not issue any particular response to Secretary Granholm’s remarks.

Major oil-producing countries sharply reduced production when global energy demand plummeted during the COVID-19 pandemic but have not expanded production to match the subsequent recovery in demand.

Earlier last month, they decided to maintain existing crude oil production levels, which led to a rise in global energy prices.

OPEC+, a coalition including OPEC, Russia, and Mexico, is scheduled to hold a meeting on November 4 to discuss production levels again.

Oil prices in the U.S. have also risen by about 40% since the Biden administration took office.

As of October 25, gasoline prices across the U.S. reached $3.40 per gallon (approximately 3,976 KRW).

Secretary Granholm cited the U.S. Energy Information Administration (EIA) forecast, stating that gasoline prices are expected to fall to around $3.05 per gallon (approximately 3,599 KRW) by early December.