Arab Press

بالشعب و للشعب
Saturday, May 30, 2026

Biden blames OPEC for inflation instead of reckless spending as approval on economy plummets

Biden blames OPEC for inflation instead of reckless spending as approval on economy plummets

Imagine: President Biden wants Mohammed bin Salman to bail out his plummeting poll numbers.
MBS, as he is called, is the crown prince of Saudi Arabia and ultimately decides his country’s oil production policy. Saudi Arabia remains the major swing producer in OPEC (Organization of Petroleum Exporting Countries), able to adjust output higher or lower to balance worldwide supply and demand. The crown prince, in short, can move global oil prices.

He is no friend of Joe Biden. This is awkward.

Because higher oil prices are boosting inflation and undermining Biden’s approval ratings, the White House is trying to bully OPEC producers into pumping more oil, even as they do their level best to squash domestic output. National Security Advisor Jake Sullivan criticized the leading oil-producing nations, saying their production was “simply not enough.”

Biden later chimed in, stating, “We also made clear to OPEC… that the production cuts made during the pandemic should be reversed as…the global economy recovers, in order to lower the prices for consumers.”

Unhappily for Biden, and for American consumers, OPEC – and especially MBS – may not heed his call.

Early in Biden’s presidency, the White House announced that Biden would not speak to MBS, but would only communicate with his father, the ailing Saudi King Salman bin Abdulaziz. Then Biden released an intelligence assessment that the crown prince was responsible for the murder of journalist Jamal Khashoggi.

This antagonism apparently did not sit well with the crown prince, who soon thereafter unexpectedly squashed an anticipated production hike from fellow OPEC members, causing oil prices to jump 4 percent. His message to Biden was clear: mess with Saudi Arabia and expect no help taming the price of oil.

Saudi Arabia is not the only nation that might resist Biden’s pleas. The UAE, in the vanguard of establishing normalized relations with Israel as part of the Trump administration’s extraordinary Abraham Accords, found its promised weapons purchases axed by the Biden team. Other efforts to undermine the breakthrough Middle East peace effort followed, alienating the Gulf nations that are the backbone of OPEC.

As a result, Biden’s cry for help may go unanswered. White House Press Sec. Jen Psaki acknowledged as much in a press conference, arguing that the White House was looking to create a “long-term engagement” with OPEC, not a quick resolution. Sure.

To be fair, asking for OPEC’s help was not the president’s only proposed “fix” for higher oil prices. He also said he has asked “the Chair of the Federal Trade Commission to use every available tool to monitor the U.S. gasoline market and address any illegal conduct…”

Here’s a better idea for Biden: Instead of blaming OPEC, or suggesting that U.S. oil companies are somehow cheating consumers, how about continuing the policies that in recent years have led to a startling increase in domestic production and subsequent decline in our reliance on OPEC oil?

Last year, the U.S. actually exported more oil and refined products than it imported for the first time since at least 1950. That is an extraordinary turnaround from the late 1970s, when OPEC contributed 85 percent of crude oil imports which, in turn, supplied 45 percent of our consumption.

Rather than working with the industry to boost production, the Biden administration is apparently planning to impose new rules that will curb oil U.S. output, like limiting federal leases in key areas, increasing the royalties that producers must pay and hiking costly bonding requirements. These changes will only give OPEC more clout and drive prices higher.

Here’s another suggestion for Biden: How about reining in your administration’s utterly reckless spending, which will clearly spur higher prices?

Inflation is not limited to higher gasoline prices, though the 41 percent increase from last year is certainly hurting consumers. Overall consumer prices increased 5.4 percent in July compared to the year before, the same rate as in June and the highest 12-month rate since 2008.

A more recent report showed producer price increases jumping one percent in July, almost double the expected rate. The increase in wholesale prices over the past 12 months was 7.8 percent, the highest since the 1980s. Those higher costs being paid by producers will be passed along to consumers in coming months, undermining the White House pitch that inflation will be short-lived.

Meanwhile, a worrisome report from the New York Federal Reserve found that consumer expectations about inflation rose to an eight-year high last month; respondents to the survey anticipate inflation of nearly 4 percent three years out, while price hikes over the next 12 months were expected to be 4.8 percent, a record.

Consumers may be getting used to rising prices, but that doesn’t mean they like them. In a recent CNBC All-America Economic survey, only 42 percent of respondents gave the president a thumbs-up on the economy, down four points from April. Worse, only 22 percent were optimistic about the economy.

Americans are anxious about inflation. It’s simple: Too much money is chasing too few goods. Democrats’ proposed $3.5 trillion “infrastructure” budget package, which they want to push through with zero GOP votes, will only make matters worse, adding fuel to the raging economy.

The Biden White House is in trouble and is looking in the wrong places for solutions. Blaming OPEC will not bring prices down, or calm voters’ fears.
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Japanese Technology Firm Fujitsu Launches Advanced Artificial Intelligence Tool for Corporate Disclosures
South Africa Officially Launches Nationwide Campaign for Highly Contested Local Government Elections
United Kingdom Commits Additional Funding for Unexploded Ordnance Clearance in Laos
Singapore Announces Stringent New Greenhouse Gas Regulations for Commercial Cooling Systems
Cambodia and Thailand Hold High-Level Border Security Talks at United Nations Headquarters
Myanmar Military Government and China Sign Major Agreement to Upgrade Media and Cultural Cooperation
Knife Attack at Swiss Train Station Leaves Three Injured in Suspected Act of Domestic Terrorism
Transnational Extortion Gang Threatens Canadian Police With Army of One Thousand Armed Operatives
Australia Imposes Forty-Two-Day Quarantine on Cruise Ship Passengers Following Deadly Hantavirus Outbreak
International Monetary Fund Unlocks Seven Hundred Million United States Dollars for Sri Lanka Following Economic Reforms
Australia Launches Record One Point Four Billion Dollar Lawsuit Against Chemical Giant 3M Over Contamination
China and Canada Foreign Ministers Meet in Ottawa in Effort to Stabilize Strained Diplomatic Ties
Indonesia Demands Urgent United Nations Security Council Reform Amid Escalating Global Conflicts
Extreme Weather Patterns Trigger Severe Drought in Madagascar and Destructive Flooding in East Africa
Indian State of Karnataka Faces Political Upheaval as Chief Minister Siddaramaiah Abruptly Resigns
Philippines and Japan Reaffirm Defense Ties as Crucial for Indo-Pacific Regional Stability
Norway Joins French Nuclear Deterrence Initiative in Major Shift for European Security Architecture
Global Critical Mineral Alliances Expand as Western Nations Move to Counter Chinese Supply Dominance
United States Imposes Fifty Percent Tariffs on Mexican Steel and Aluminum Ahead of Trade Pact Review
European Union and China Head Toward Major Trade Conflict Over Clean Technology Exports
United States Economic Growth Severely Downgraded to One Point Six Percent as Stagflation Fears Mount
World Health Organization Warns Central African Ebola Epidemic is Outpacing Containment Efforts
United States Treasury Department Conditions Sanctions Relief on Reopening of the Strait of Hormuz
Iranian Air Defenses Intercept and Destroy United States Military Drone Over Bushehr Province
Iranian Armed Forces Launch Ballistic Missiles Toward Unspecified Targets Prompting Regional Condemnation
United Nations Secretary-General Warns Global Order Facing Highest Level of Conflict Since 1945
Israel Issues Sweeping Evacuation Orders in Southern Lebanon Amid Intensified Hezbollah Conflict
Russia Announces Systemic Military Strikes Targeting Ukrainian Defense and Energy Infrastructure
United States and Iranian Negotiators Reach Draft Agreement to Extend Ceasefire and Resume Nuclear Talks
United Nations Security Council Deeply Divided Over United States Capture of Venezuelan President
US and Iran Exchange Direct Military Strikes Amid Fragile Gulf Ceasefire
World Health Organization Warns of Catastrophic Ebola Outbreak in DR Congo
Russia Threatens New Wave of Strikes on Ukrainian Infrastructure and Embassies
Scientists Warn Atlantic Ocean Currents Could Collapse Faster Than Projected
Anthropic Reaches $900 Billion Valuation in Historic AI Funding Round
Washington Imposes Crippling Sanctions on Iranian Maritime Authority
Japan and the Philippines Initiate Strategic Intelligence-Sharing Pact
Microsoft Deploys Autonomous Computer-Using AI Agents to Global Markets
Anthropic Secures $45 Billion Compute Infrastructure Agreement With SpaceX
U.S. Director of National Intelligence Resigns Amid Administration Shakeup
Micron Technology Crosses Trillion-Dollar Valuation Amid Unprecedented Hardware Demand
Canada and Germany Finalize Historic Long-Term LNG Export Agreement
China Expands International Travel Restrictions on Domestic AI Researchers
Japan Approves Sweeping Overhaul of National Intelligence Apparatus
Global Airlines Scramble Logistics as Middle East Airspace Remains Fractured
Japan's Naphtha Imports Plunge 47 Percent Amid Strait of Hormuz Closure
Global Crude Prices Retreat Below $96 as Gulf Tensions Momentarily Ease
Generative AI Outperforms Human Baselines in Landmark Global Creativity Study
NASA Partners With Private Aerospace to Unveil Permanent Lunar Base Architecture
South Korean Equity Markets Surge on Next-Generation Memory Chip Frenzy
×