The US called for an end to the impasse among Opec+ members in oil output talks on Monday.
Leaders of the Opec+ alliance postponed talks on Monday after the United Arab Emirates refused to agree to a proposed eight-month extension to curbs on output.
“The United States is closely monitoring the OPEC+ negotiations and their impact on the global economic recovery from the COVID-19 pandemic,” a White House spokesperson said in a statement.
Read more: Opec+ supply talks end in deadlock
The deadlock over oil output levels extended into a third day on Monday after the alliance failed to reach an agreement during talks on Thursday and Friday last week.
The stalemate has wider implications for the US and global economy amid concerns that surging commodity prices could push inflation higher and slow the recovery from the pandemic.
Elevated oil prices would make it harder for the Biden administration to deliver on promises to increase spending on infrastructure to stimulate the US economy.
Persistently higher price rises could prompt central banks to tighten monetary policy by quickly raising interest rates, making borrowing costs much higher for firms who are currently sitting on huge debt piles amassed since the onset of Covid.
International benchmark Brent crude oil was trading above $77 a barrel on Monday, or 1.2 per cent higher, while WTI surged 1.88 per cent to $76.7.
The alliance agreed to rapidly cut oil production by almost 10m barrels per day last year after the pandemic and measures to contain it drastically reduced demand for fuel.
These reductions in output have been gradually wound down as the global economy reopens.
Sources told Retuers that the UAE on Friday accepted a proposal from Saudi Arabia and other Opec+ members to raise output in stages by about 2 million bpd from August to December but rejected extending remaining cuts to the end of 2022 from a current end date of April without adjusting its current baseline production.
Analysts have said that if the group fails to reach an agreement soon, they could struggle to manage prices in the future.
Read more: Oil prices hit highest levels in three years