On Sunday, Saudi Arabia, joined by Russia and other OPEC+ oil producers, announced they are rolling out voluntary cuts to their oil production. As much as 1.15 million barrels per day will stop being produced, Reuters reported.
The oil cuts are expected to lead to higher gas prices in the United States.
Reminder: Biden has sold millions of barrels from the Strategic Petroleum Reserve (SPR) since his inauguration, depleting it down to its lowest point in four decades.
NBC News reported:
Saudi Arabia said Sunday it will cut oil production by 500,000 barrels per day from May until the end of 2023, a move that could raise prices worldwide.
Higher oil prices would help fill Russian President Vladimir Putin’s coffers as his country wages war on Ukraine and force Americans and others to pay even more at the pump amid inflation fueled in part by that conflict.
It was also likely to further strain ties with the United States, which has called on Saudi Arabia and other allies to increase production as it tries to bring prices down and squeeze Russia’s finances.
The Saudi Energy Ministry said the cuts would be made in coordination with some OPEC and non-OPEC members, without naming them. The cuts are in addition to a reduction announced last October that infuriated the Biden administration.
Saudi officials announced earlier this year they are ready to trade in yuan instead the US dollar in a huge blow to the American economy.
