Saudi oil production cuts: A self-interested move

Source: Responsible Statecraft
by Patricia Karam

“Saudi Arabia’s announcement last month of surprise oil production cuts reverberated around the world. The cuts consisted of a voluntary reduction of 500,000 barrels per day, made in coordination with both OPEC and non-OPEC oil-producing countries (including Russia), with the total cut reaching more than 1 million barrels per day, or roughly 1 percent of global production. President Joe Biden was quick to dismiss the announcement, claiming that while he considered the decision unwise given current market uncertainty, the result is ‘not going to be as bad as you think.’ The global outlook remains decidedly uncertain as the US and other economies teeter on the edge of recession, with the continued menace of food and energy insecurity and the threat of high energy prices looming, especially as geopolitical conflicts endure.” (05/18/23)