Saudi Arabia and OPEC Reveal Surprise Oil Production Cut; White House Insists Cuts Aren’t Advisable Right Now

Saudi Arabia and OPEC Reveal Surprise Oil Production Cut; White House Insists Cuts Aren"t Advisable Right Now

On Sunday, Saudi Arabia and several major oil producers announced their plan to cut oil production by 1.15 million barrels per day, starting in May and continuing until the end of 2023. According to the Saudi Energy Ministry, the move was coordinated with some members of the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC members as a “precautionary measure” to stabilize the oil market. Geopolitical Implications: The Move to Cut Oil Production Comes Amid Shifting Alliances and Tensions Between Major Players

This weekend, Saudi Arabia and several major oil producers, including Russia, the United Arab Emirates (UAE), Iraq, Kuwait, Oman, and Algeria, plan to reduce oil production by a total of 1.15 million barrels per day.

Saudi Arabia and Russia announced that each country would decrease oil production by 500,000 barrels per day (bpd), while the UAE will cut 144,000 bpd and Kuwait will reduce production by 128,000 bpd.

The announcement of the oil superpowers’ decision to cut supply follows the reductions made in October, when oil-producing nations announced a decrease in production by 2 million bpd. At the time, the Biden administration expressed its anger and warned of “consequences.”

On Sunday, the White House responded to the surprise cuts, and a spokesperson for Biden’s National Security Council said the United States does not believe that reducing production is advisable.

The spokesperson also stated that Biden’s administration would continue to collaborate with oil producers to maintain low prices at the pump for American gas consumers. This news follows several reports over the last week indicating that several large nations are shifting away from U.S. dollar settlements.

According to Alexander Babakov, the deputy chairman of the State Duma, the BRICS countries (Brazil, Russia, India, China, and South Africa) plan to discuss the creation of a new reserve currency for the group of countries. In addition, China recently struck a bilateral deal with Brazil that enables trades in their respective national currencies to purchase Liquefied Natural Gas (LNG).

Furthermore, with China’s rapid growth, the BRICS bloc is now the world’s largest gross domestic product (GDP) group. Saudi Arabia and other major oil producers believe that the reduction in production will help stabilize the oil market and is being implemented as a “precautionary measure,” according to Riyadh’s energy agency.

Data indicates that despite the oil production cut in October, prices of Brent crude and other measures of oil per barrel have decreased from $95 per barrel to $80. Last October, Democrat policymakers wanted to cut ties with Saudi Arabia, remove troops from the region, and end arm sales. Tags in this story algeria, American gas consumers, barrel, Biden Administration, bilateral deal, Brazil, Brent crude, BRICS countries, China, Currency, Economy, energy agency, Foreign Policy, GDP bloc, Global Economy, India, iraq, Kuwait, liquefied natural gas, major oil producers, National Security Council, non-OPEC members, oil market, oil production, Oman, opec, petroleum, Politics, precautionary measure, reduction, reserve currency, Russia, Saudi Arabia, South Africa, stabilize, State Duma, Supply Chain, trade, U.S. dollar settlements, United Arab Emirates, White house

What are your thoughts on the implications of the oil production cuts by Saudi Arabia and other major oil producers? Do you believe it will have a significant impact on global oil prices and the economy? Share your thoughts about this subject in the comments section below. Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today. "Big Short" Investor Michael Burry Says He Was Wrong to Advise Selling; Congratulates "BTFD Generation" ECONOMICS | 6 hours ago BRICS Nations Working on Creating New Currency to Be Discussed at Next Leaders Summit: Report ECONOMICS | 22 hours ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleTrump Cards Jump Amid Indictment, Strong Quarter for NFT Market Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItFollowing a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days

Transaction fees on the Ethereum network are dropping again after average fees saw a brief spike on April 5 jumping to $43 per transfer. 12 days later, average ether fees are close to dropping below $10 per transaction and median-sized ... read more.Draft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament Today"s Top Ethereum and Bitcoin Mining Devices Continue to Rake in Profits Australia to List Bitcoin ETF After 4 Clearinghouse Participants Commit to Meet Stringent Margin Terms FBI Issues Alert Concerning Malicious State-Sponsored North Korean Hackers Targeting Crypto Firms