US calls on OPEC and its allies to increase oil production

President Joe Biden's top aides are calling on OPEC and its oil-producing allies to boost production in an effort to combat climbing gasoline prices that they see as a threat to the global economic recovery.

Biden's national security adviser Jake Sullivan criticised the world's major oil producers for what he said were insufficient increases in production as economies recover from the global Covid-19 pandemic.

"At a critical moment in the global recovery, this is simply not enough," he said in a statement.

The administration is pressing countries within OPEC+, which groups the Organization of the Petroleum Exporting Countries with Russia and other big producers, "on the importance of competitive markets in setting prices," Sullivan said.

"Higher gasoline costs, if left unchecked, risk harming the ongoing global recovery," he added. "OPEC+ must do more to support the recovery."

A rise in oil prices has helped fuel inflation concerns. Biden has made the economic recovery from the recession triggered by the coronavirus pandemic a key priority for his administration.

The White House on Wednesday also directed the Federal Trade Commission to investigate whether illegal practices were contributing to higher US gasoline prices.

International benchmark Brent crude was trading at just under $70 a barrel on Wednesday, down 1%.

(Reuters)