Saudis, others cutting oil production could spike prices worldwide
A gas turbine generator at the Khurais Processing Department in the Khurais oil field in Khurais, Saudi Arabia, on Monday, June 28, 2021.
Photographer: Maya Siddiqui/Bloomberg via Getty Images DUBAI, United Arab Emirates (AP) - Saudi Arabia and other major oil producers on Sunday announced surprise cuts totaling 1.15 million barrels per day from May until the end of the year, 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 worlwide inflation.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.RELATED: Plants can make noises when under stress, study saysThe Saudi Energy Ministry said its own reduction of 500,000 barrels per day 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.Ministers from Organization of the Petroleum Exporting Countries (OPEC+) on Wednesday said they would cut oil production by 2 million barrels a day in a move that is expected to raise oil prices globally.
President Biden said, "[he] is disappointed by the shortsighted decision by OPEC+ to cut production quotas while the global economy is dealing with the continued negative impact of Putin’s invasion of Ukraine."The ministry described the move as a "precautionary measure" aimed at stabilizing the oil market.
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