U.S. Secretary of the Treasury Janet Yellen delivers opening remarks during an event highlighting “anti-corruption work as a cornerstone of a good, accountable, and democratic economy” as a part of the 2023 Summit for Democracy on the Treasury Department on March 28, 2023 in Washington, DC.
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WASHINGTON — Treasury Secretary Janet Yellen said the surprise OPEC+ oil production cut announced Sunday was an “unconstructive act,” which could hurt U.S. efforts to lower inflation.
“I feel it is a regrettable motion that OPEC decided to take. I’m unsure yet just what the value impact can be, I feel we want to attend somewhat longer for, you understand, to essentially assess that,” Yellen told reporters Monday following an event at Yale University in Recent Haven, Conn.
Yellen also said the production cuts could, in the long run, merit a reassessment of the present $60 per barrel price cap on Russian oil shipped in Western tankers. But she said that raising the cap was not needed for now.
The voluntary cuts amount to greater than 1 million barrels per day, starting in May and running until the tip of 2023, Saudi Arabia announced. The dominion’s Energy Ministry called it a “precautionary measure” that goals to stabilize the oil market.
In Washington, the Biden administration sharply criticized the cuts.
“We do not think cuts are advisable at this moment, given market uncertainty — and we have made that clear,” National Security Council spokesman John Kirby said Monday. He added that the USA received advance notice of the OPEC announcement.
The OPEC cut follows Russia’s recent decision to trim oil production by 500,000 barrels per day until the tip of 2023.
— CNBC’s Kayla Tausche contributed to this report
