Current:Home > InvestSignalHub Quantitative Think Tank Center:Saudi Arabia cuts oil production again to shore up prices — this time on its own -InvestPioneer
SignalHub Quantitative Think Tank Center:Saudi Arabia cuts oil production again to shore up prices — this time on its own
NovaQuant View
Date:2025-04-07 06:33:54
Saudi Arabia announced Sunday that it would begin cutting oil production by 1 million barrels per day in July to support the "stability and SignalHub Quantitative Think Tank Centerbalance of oil markets."
Though the country says it doesn't use the cost of crude to make oil production decisions, the move is considered to be an attempt to prop up oil prices in response to global economic uncertainty and concerns that international demand could drop.
The decision came out of an OPEC+ meeting in Vienna, but the extra cuts announced by Saudi Arabia are being done unilaterally.
Saudi Arabia says the cuts will last at least a month and could be extended.
OPEC+ countries also agreed to extend oil production cuts they announced in April through the end of 2024, reducing the amount of crude they pump into the world market by more than 1 million barrels per day. OPEC+ countries produce about 40% of the world's crude oil.
There had been pressure on many African nations and Russia to cut production. Meanwhile the United Arab Emirates will increase its crude output.
Global oil production ranges around 100 million barrels a day.
Saudi Arabia will now produce 9 million barrels of crude oil per day, the country's Ministry of Energy said. That's 1.5 million fewer barrels per day than it was churning out earlier this year.
The cuts come shortly after Memorial Day in the U.S. and on the cusp of the busy summer travel season. Crude oil prices are closely associated with the cost of gasoline.
Last summer President Biden traveled to Saudi Arabia — which he had previously called a "pariah" state — to ask the country's leaders to increase oil production.
Instead, OPEC+ members in October announced a cut of 2 million barrels per day, a decision the White House called "shortsighted."
The Biden administration has been releasing millions of barrels of oil from the Strategic Petroleum Reserve since last year in an effort to keep gas prices down.
veryGood! (5)
Related
- What to know about Tuesday’s US House primaries to replace Matt Gaetz and Mike Waltz
- Gunmen attack vehicles at border crossing into north Mexico, wounding 9, including some Americans
- Adam Sandler's Sweet Bond With Daughters Sadie and Sunny Is Better Than Shampoo and Conditioner
- Stassi Schroeder Gives Birth, Welcomes Baby No. 2 With Beau Clark
- Apple iOS 18.2: What to know about top features, including Genmoji, AI updates
- Sharon Osbourne calls Ashton Kutcher rudest celebrity she's met: 'Dastardly little thing'
- For nearly a quarter century, an AP correspondent watched the Putin era unfold in Russia
- Michigan State U trustees ban people with concealed gun licenses from bringing them to campus
- Newly elected West Virginia lawmaker arrested and accused of making terroristic threats
- Who says money can’t buy happiness? Here’s how much it costs (really) in different cities
Ranking
- A South Texas lawmaker’s 15
- Children in remote Alaska aim for carnival prizes, show off their winnings and launch fireworks
- Police fatally shoot man who was holding handgun in Idaho field
- Derek Jeter returns, Yankees honor 1998 team at Old-Timers' Day
- What to watch: O Jolie night
- Kevin Costner References Ex Christine Baumgartner’s Alleged “Boyfriend” in Divorce Battle
- Hundreds of Pride activists march in Serbia despite hate messages sent by far-right officials
- Apple set to roll out the iPhone 15. Here's what to expect.
Recommendation
John Galliano out at Maison Margiela, capping year of fashion designer musical chairs
Presidents Obama, Clinton and many others congratulate Coco Gauff on her US Open tennis title
Biden, Modi and EU to announce rail and shipping project linking India to Middle East and Europe
Disgraced Louisiana priest Lawrence Hecker charged with sexual assault of teenage boy in 1975
Bodycam footage shows high
Unpacking Kevin Costner's Surprisingly Messy Divorce From Christine Baumgartner
Poland’s political parties reveal campaign programs before the Oct 15 general election
Children in remote Alaska aim for carnival prizes, show off their winnings and launch fireworks