Saudi Arabia cuts oil production again to shore up prices — this time on its own

Saudi Arabia announced a unilateral cut in oil production by 1 million barrels per day in July to support the stability and balance of oil markets.

In response to concerns: The move is seen as an attempt to prop up oil prices amid global economic uncertainty and potential drops in international demand.
* The decision follows an OPEC+ meeting in Vienna.
* Saudi Arabia will now produce 9 million barrels of crude oil per day, down from the 10.5 million they were producing earlier this year.

Extending current cuts: OPEC+ countries agreed to extend oil production cuts announced in April through the end of 2024, reducing their global output by more than 1 million barrels per day.
* OPEC+ countries account for about 40% of the world’s crude oil production.

Effects on prices: Crude oil prices are closely associated with the cost of gasoline, and the cuts come shortly after Memorial Day in the U.S. and on the cusp of the busy summer travel season.
* Last summer, President Biden traveled to Saudi Arabia and asked leaders to increase oil production, but OPEC+ members announced a cut of 2 million barrels per day in October.

View original article on NPR

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