Yellen says OPEC oil output declines bad for global economy

US Treasury Secretary Janet Yellen added her voice to the members of the Biden administration who spoke out against the recent cuts in oil production announced by the OPEC+ group.

Yellen said OPEC+’s move to cut oil production was “inappropriate and unwise” for the global economy, especially emerging markets already struggling with high energy prices, according to the Financial Times.

The Biden administration has been vocally critical of the decision by the oil cartel, which took the step in defiance of US pressure to keep global oil prices low.

“I think OPEC’s decision is inappropriate and unwise — it’s uncertain what effect it will end up having, but it’s certainly something that to me didn’t seem appropriate under the circumstances we’re facing,” Yellen said in a telephone interview with it. Financial Times. “We are very concerned about developing countries and the problems they face.”

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Treasury Secretary Janet Yellen

U.S. Treasury Secretary Janet Yellen holds a news conference after a two-day meeting of the Federal Open Market Committee (FOMC) in Washington, U.S. December 13, 2017. REUTERS/Jonathan Ernst (REUTERS/Jonathan Ernst/Reuters Photos)

OPEC+ ministers said on Wednesday they would cut oil production by 2 million barrels per day in one move, i.e. expected to raise oil prices globally.

The OPEC decision came as the White House pressured top oil producers such as Saudi Arabia – which leads the international oil cartel – not to make drastic cuts in oil production as gas prices remain high.

OPEC logo

A 3D printed oil pump plug is seen in front of the OPEC logo in this illustration. (REUTERS/Dado Ruvic/File Photo/Reuters Photos)

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White House officials have said they will begin consultations with Congress about possible responses.

President Biden talked about rising gas prices in Maryland

President Biden speaks at the Volvo Group Powertrain Operations facility in Hagerstown, Maryland. (AP Photo/Julio Cortez/AP Newsroom)

The president has for a long time been focused on examining all available options to try to bring [oil prices] down,” she added.

The IMF and the World Bank hold annual meetings in Washington next week.

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Yellen may be hearing from counterparts around the world about concerns about the value of the dollar, which has risen sharply as the Federal Reserve has aggressively raised interest rates.

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