Saudi Arabia extends its oil production cut through Q1 2024 in an effort to raise prices, despite OPEC+ reductions failing to achieve the desired outcome. The move benefits US drivers with lower gas prices but impacts OPEC+ economies.
London, Nov 30 (AP) Saudi Arabia will extend a cut in the amount of oil it sends to the world after a series of reductions by members of the OPEC+ alliance of major producing countries failed to prop up prices.
That's been a good thing for US drivers, who have been able to fill their gas tanks for less money in recent months. But it's bad news for OPEC+ countries whose oil income bolsters their economies and who have faced setbacks in pushing prices higher despite initial fears that the Israel-Hamas war could affect oil flows.
The Saudi Energy Ministry said in a statement on its website that its voluntary cut of 1 million barrels per day will stay in place through the first three months of next year.
It was announced after rest of the OPEC oil cartel and allied nations like Russia met in an online meeting about global oil production.
The OPEC+ coalition announced that Brazil will join the bloc in January, bringing one of the world's fastest-growing oil producers into the alliance. (AP)
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