Italy’s Mario Draghi proposed a “cartel of buyers” to US President Joe Biden as a way to deal with OPEC President Joe Biden and Italy’s Prime Minister Mario Draghi meet in the Oval Office of the White House, Tuesday, May 10, 2022, in Washington. © AP / Manuel Balce Ceneta

Italian Prime Minister Mario Draghi said on Wednesday that he discussed setting up a “cartel” of oil buyers in order to persuade the OPEC countries to produce more oil, as well as imposing price caps on oil and gas, when he met with US President Joe Biden.

Draghi told reporters that he and Biden shared a “dissatisfaction” with how global energy markets were structured and discussed the “general concept” of capping both oil and gas prices, when they met on Tuesday.

“We are both dissatisfied with the way things work, in terms of oil for the US and in terms of gas for Europe,” Draghi told reporters in Washington. “Prices don’t have any relationship with supply and demand.”

Capping gas prices would “reduce the financial help we are giving to [Russian President Vladimir] Putin to continue the war” and make use of Europe’s “market power,” Draghi said, adding that the “same thinking could be applied to oil at a global level.”

“The idea is to create a cartel of buyers, or to persuade the big producers, and OPEC in particular, to increase production, which is perhaps the preferred path,” Draghi said, though he admitted there wasn’t unanimous support for such thinking in the EU itself. (RT)