Saudis to cut oil production by 500,000 barrels per day

By AP News

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Saudi Arabia says it will cut oil production by 500,000 barrels per day from May until the end of 2023

Saudi Arabia

DUBAI, United Arab Emirates (AP) — Saudi Arabia says it will cut oil production by 500,000 barrels per day from May until the end of 2023.

The move would likely raise oil prices, further straining relations between Riyadh and Washington as the world copes with inflation fueled in part by the war in Ukraine.

The Energy Ministry said Sunday that the cuts would be made in coordination with some OPEC and non-OPEC members, without naming them, and were in addition to a reduction announced last October.

It described the move as a “precautionary measure” aimed at stabilizing the oil market.

Saudi Arabia angered the Biden administration last year when it and other OPEC members agreed to cut production on the eve of U.S. midterm elections in which inflation was a major issue. Both the U.S. and Saudi Arabia denied any political motives, saying they were focused on maintaining a healthy market price.

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Author: AP News

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