Just days after the Organization of the Petroleum Exporting Countries agreed to a production cut that is equivalent to 2% of the global supply, the CEO of JP Morgan said the US should increase oil production.
"Obviously, America needs to play a real leadership role, because America is the swing producer, not Saudi Arabia," he said. We should have been able to get that right in March. It's almost too late to make a good investment.
Russia is a major supplier of oil and gas and energy prices have gone up as a result. After Russia began cutting natural-gas supplies to Europe, fears of a worsening energy crunch increased.
America should have pumped more oil and gas, he said.
According to the EIA, the US produces 18.9 million barrels of oil a day. The US is the world's largest consumer of oil.
Saudi Arabia produces 10.8 million barrels of oil a day but consumes just 3.2 million, exporting the rest, according to the EIA.
The industry's exports are hitting maximum levels and can't be boosted overnight, US producers told the Financial Times.
After a weaker global economy, the Organization of the Petroleum Exporting Countries and its allies agreed to cut oil output. The White House said the president was disappointed by the decision.
In an interview with the Financial Times on Sunday, Janet Yellen, the US Treasury Secretary, said that the decision of the Organization of the Petroleum Exporting Countries was "unhelpful and foolish". The International Monetary Fund and World Bank annual meetings in Washington this week will discuss soaring inflation.
In order to reduce the use of coal and transition to renewable energy, there is now a longer-term problem of the world not producing enough oil and gas. He said that the issue should be treated as a matter of war at this point.
In an interview, he predicted a recession for the US in the next nine months.
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