FRANKFURT, Germany - Saudi Arabia will cut 1M barrels of oil per day it sends into the global economy taking steps to halt sagging price of crude after two previous cuts to supply by producing countries in the OPEC+ alliance failed to push oil higher.
The Saudi cut is to start in July. It comes as the other OPEC+ producers agreed in a meeting in Vienna to extend earlier production cuts through 2024.
The new cut would likely push oil prices upward in the short term, but the impact would depend on whether Saudi Arabia decides to extend it, said Jorge Leon, senior VP of oil markets research firm Rystad Energy.
The U.S. recently replenished its Strategic Petroleum Reserve - after Biden announced the largest release from the national reserve in history last year - in an indication that American officials may be less worried about OPEC cuts than in months past. (The AP 06/04/23) Saudi Arabia is slashing oil supply. It could mean higher gas prices for US drivers | AP News
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