Saudi Arabia extends cut in oil it sends to world in bid to boost prices
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 has been a good thing for US drivers, who have been able to fill their tanks for less money in recent months.
But it is 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 one million barrels per day will stay in place through the first three months of next year.
It was announced after the 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.
The International Energy Agency says booming crude oil production in the United States and Brazil has been frustrating efforts by Opec+ to rein in global oil supply.
Jose Chrispiniano, press secretary for President Luiz Inacio Lula da Silva, says the invitation is under analysis.
Opec+ members, which include Opec nations and allied producers led by Russia, are working to bring oil prices back up amid market oversupply and anticipated falling demand next year.
