New measures taken by the G7 countries to limit the sale of Russian oil at a set low price will not be used against OPEC producers, whose plans to cut production have angered consumer countries, a US Treasury official told Reuters.

Washington has spoken to representatives of the Organization of the Petroleum Exporting Countries (OPEC) to reassure them of these limits on its plans, and has argued from the beginning that the limit would not affect other oil producers, the official added.

The comments could help ease a row between the United States and Saudi Arabia, the biggest oil exporter and OPEC’s de facto leader, over what Washington says is colluding with Russia to starve markets of supplies just as a global recession looms.

Tensions between oil-consuming nations such as the United States and oil producers have been high over production policy, with sources telling Reuters that OPEC’s anger over the price cap plan was one of the reasons it decided to cut production.

OPEC+, which brings together the producer bloc with allies including Russia, said last week it would cut output by 2 million barrels a day to balance markets and calm volatility.

Saudi Arabia said the actual cut was likely to be about 1 million barrels per day (bpd) as several OPEC members struggled to meet existing production plans.

The White House said a US analysis showed the cuts could wait until the next OPEC meeting after the US mid-term elections in November.

But OPEC officials did not link the move to capping Russian oil prices in their negotiations with the United States, US Assistant Treasury Secretary Wally Adeyemo said last week.

The United States said last week that the cuts would increase Russian revenues and suggested it was politically motivated by Saudi Arabia, which on Sunday denied backing Moscow for its invasion of Ukraine.

The Dec. 5 price cap was designed specifically to address Russia’s incursion into Ukraine and will not be passed on to other producers, the official added, because their measures to limit production lead to higher prices.

The new sanctions also do not signal the start of a cartel of buyers to counter the impact of OPEC’s policies on the oil market, said the official, who declined to be named because of the sensitivity of the situation.

The Paris-based International Energy Agency, which brings together consumer nations, said last week that the OPEC+ cuts had pushed prices higher and could push the global economy into recession.

But a U.S. Treasury official believed the impact of the cut on prices was muted, saying it would take a $30-$40 price increase or a production cut of 10 times the actual OPEC+ output cut to trigger the market 900,000 barrels per day. recession

The G7 wants to strip Moscow of war revenue but is trying to avoid a global supply shock that could push up prices and hurt its own citizens as fears of a global recession deepen.

The price cap plan adopted by the G7 countries in September contradicted much stricter European Union bans on supplies from Russia, ratified in June.

The EU agreed to the restrictions this month, but regulatory details have yet to be settled, raising concerns about the plan in the oil industry six weeks before it expires, Reuters reported.

15 million barrels of crude oil from the country’s strategic reserves

US President Joe Biden on Wednesday announced a plan to sell 15 million barrels of crude oil from the United States’ strategic stockpiles and begin replenishing them in an effort to curb high gasoline prices ahead of the Nov. 8 midterm elections. Reuters.

The move comes two weeks after the Saudi-led Organization of the Petroleum Exporting Countries angered Biden by siding with Russia and deciding to cut production, sparking fears of yet another rise in US gas station prices, News.ro cited.

“With my announcement today, we will continue to stabilize markets and lower prices at a time when the actions of other countries have caused such volatility,” Biden said at a White House event.

Biden blamed Russian President Vladimir Putin’s invasion of Ukraine for driving up oil and gasoline prices, with prices down 30 percent from their peak earlier this year.

Biden calls for increased oil production in the United States

Joe Biden, who wants to lower the price of gasoline, on Wednesday asked American companies to increase oil production in the United States, AFP reports.

The U.S. “must sensibly increase U.S. oil production,” the president said at the White House after confirming that the U.S. would continue to use its strategic reserves to stabilize prices.

This increase in domestic production must be accomplished “without delaying our transition to clean energy,” the president said.

Biden also repeated his criticism of individual players in the oil and gas industry.

“Refinery profits are twice as high as usual. And the distributor’s margin is more than 40% higher than usual,” he wrote on Twitter.