Riyadh Holds Firm on Oil Output Limits
Saudi Arabia has announced that it will continue to keep oil production nearly one million barrels per day below its quota for another month. This decision, made in collaboration with Russia’s 300,000 barrel per day cut, aims to support oil prices amidst concerns about slowing economic growth. However, this move has frustrated U.S. officials who have been urging producers to increase output in order to lower fuel costs.
Key Points:
- Saudi Arabia will extend its 1-million barrel oil cut to September.
- OPEC+ curbs may hinder U.S. efforts to control inflation.
- Gas prices in the U.S. are currently at an average of $3.869 per gallon.
- Some analysts attribute the high gas prices to extreme heat and heatwaves.
- Saudi Energy Minister Prince Abdulaziz bin Salman defended the voluntary cuts, citing precautionary measures.
In conclusion, Saudi Arabia’s decision to maintain oil output limits will likely impact oil prices and frustrate U.S. officials. With gas prices in the U.S. already high, this move could further contribute to inflation concerns. However, Saudi Arabia defends these cuts as a precautionary measure and emphasizes the need to be proactive in the volatile oil market.
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