Saudi Arabia keeps sticking it to President Joe Biden.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, OPEC+, surprised global financial markets by announcing an expected production cut on Sunday.
OPEC+ producers confirmed that they will slash output by about 1.16 million barrels per day (bpd), prompting the U.S. administration to call it “inadvisable.”
The voluntary cuts will begin in May and last until the end of the year.
The news sent West Texas Intermediate (WTI) crude oil futures above $80 in overnight trading.
“We don’t think cuts are advisable at this moment given market uncertainty – and we’ve made that clear,” a spokesperson for the National Security Council said.
More from CNBC:
Top OPEC producer Saudi Arabia said it would cut output by 500,000 bpd. The Saudi energy ministry said the kingdom’s voluntary reduction was a precautionary measure aimed at supporting the stability of the oil market.
…
The voluntary cuts start in May and last until the end of the year. Iraq will reduce its production by 211,000 bpd, according to an official statement.
The UAE said it would cut production by 144,000 bpd, Kuwait announced a cut of 128,000 bpd while Oman announced a cut of 40,000 bpd and Algeria said it would cut its output by 48,000 bpd. Kazakhstan will also cut output by 78,000 bpd.
Russia’s Deputy Prime Minister Alexander Novak also said on Sunday that Moscow would extend a voluntary cut of 500,000 bpd until the end of 2023. Moscow announced those cuts unilaterally in February following the introduction of Western price caps.
Leave a Comment