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Boost oil supply so people don’t get hurt

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Jennifer Granholm is the U.S. Secretaryof Energy. She speaks to reporters at the White House on April 8, 2021.

Kevin Lamarque | Reuters

LONDON — U.S. Energy Secretary Jennifer Granholm has called on oil-producing nations to immediately increase crude supplies to mitigate the surging cost of living.

This Thursday oil cartel OPEC and its allies agreed to continue with their current output planIn spite of U.S. pressures to cool the market, they decided against loosening the faucets

Recently, oil prices reached their highest level since 2014. Crude-importing countries have been feeling the pinch. The increase in gasoline prices has led to higher inflation rates worldwide, which have already caused consumers to pay more. supply bottlenecks in the economy

Granholm was asked by CNBC how the U.S. relates to Saudi Arabia after the decision on output. Granholm replied: “In certain places, we have strong relations and in other places we wish that our allies would go a bit faster.”

On Friday’s COP26 climate summit, in Glasgow (Scotland), she stated that the message was to “increase supply” so that no one is hurt during winter.

President Joe Biden has squarely blamed the reluctance of OPEC and its allies, known as OPEC+, to pump more oil for the sharp rise in energy prices in the U.S. and around the world.

“The idea that Russia and Saudi Arabia and other major producers are not going to pump more oil so people can have gasoline to get to and from work, for example, is not right,” Biden said Sunday at the G-20 meeting in Rome.

OPEC+ decided to rollover its August plan to gradually increase oil production by 400,000 barrels per day each month. On Thursday, ministers at the meeting stated that the group is maintaining the market balance while remaining cautious of possible changes in demand.

Many ministers also cited the skyrocketing price of coal and gas to make the argument that the oil market is fortunate to have OPEC+ regulating supply.

International oil benchmark Brent crude was trading at $80.80 per barrel at 7:30 a.m. ET was down 27 cents on Friday, compared to the previous day.

—CNBC’s Natasha Turak contributed to this article.

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