02-04-2023 : Saudi Arabia to reduce oil production by 500,000 barrels per day until 2023 end In an effort to stabilize the oil market, Saudi Arabia has announced its decision to cut oil production by 500,000 barrels per day from May until the end of 2023. The Energy Ministry clarified that the cuts would be carried out in cooperation with certain OPEC and non-OPEC members, which were not identified, and were in addition to a reduction made in October last year.
This “precautionary measure” could potentially cause a surge in oil prices and further strain the relationship between Riyadh and Washington as the world faces inflation partly driven by the conflict in Ukraine. Despite last year’s decision drawing criticism from the Biden administration, both the U.S. and Saudi Arabia denied any political motivation, citing their focus on maintaining a healthy market price.