CNBC obtained the statement from Jake Sullivan, National Security Advisor. "Competitive markets in energy will ensure stable and reliable energy supplies. OPEC+ must support the recovery."According to the White House, the July agreement by the group to increase production by 400,000 barrels per month starting in August and continuing into 2022 was "simply insufficient" at a "critical time in the global recovery."Biden administration officials met this week with representatives of OPEC's defacto leader Saudi Arabia, as well with representatives of the United Arab Emirates (OPEC+) members.In an effort to counter rising gasoline prices, the White House has called on OPEC and its oil producing allies to increase production. This is amid concern that rising inflation could impede the economic recovery from Covid.As demand for petroleum products increases, gas prices have risen this year. According to AAA, the national average price for a gallon was $3.186 Tuesday. This is up from $3.143 one month ago. Prices have increased by just $1 over the past year.The national average crossed $3 in May for the first time since 2014.A senior White House official said that the president is aware that gas prices can be a burden on family budgets. He asked not to be identified in order to discuss the matter candidly. His administration should use all the tools it has to reduce gas prices.On the heels of an increase in oil prices, gas prices have risen. The benchmark U.S. oil price, West Texas Intermediate crude crude futures, fell to negative territory in April 2020 as the pandemic weakened demand for petroleum products.In an unprecedented move to support prices, OPEC+ took the unprecedented decision to pull nearly 10 million barrels per hour from the market in April 2020. Meanwhile, U.S. producers cut back their production.WTI has risen above $70 per barrel due to supply cuts and a recovery in demand. However, the contract has slid slightly from this level in recent sessions.OPEC+ continues to withhold about 6 million barrels of oil per day. It plans to slowly return the market to these volumes. After the UAE raised concerns about its baseline quota, the group's most recent meeting was canceled. This briefly caused turmoil in the oil market. The group reached an agreement in July.The U.S. producers shut off their water supply during the pandemic and have been slow to get production back on track. The Energy Information Administration reported that U.S. production fell to 11.2 million bpd in may, compared with the high of 13 million pre-pandemic.Consumers feel the pinch at the pump. It's not just gas prices rising that are increasing.According to the Labor Department, July's consumer price index increased 5.4%. This is the same as June's reading. It was August 2008's largest monthly increase.Although fuel prices have increased over the past year, a senior White House official quickly noted that gas prices remain below the levels of the early 2010s.
