Saudi Arabia Announces Cuts To Oil Production To Boost Prices

Saudi Arabia will cut its oil production by 1 million barrels per day in a move to boost oil prices, according to a Sunday announcement.

“This is a Saudi lollipop,” Saudi Energy Minister Prince Abdulaziz said of the decision reported in Reuters.

Riyadh’s voluntary cuts, effective July 2023, fall under a broader plan put in place by the Organization of the Petroleum Exporting Countries and allies (OPEC+), the outlet noted. The Russia-led group settled on a deal to further reduce overall production targets through 2024. The agreement increases the production targets for the United Arab Emirates while lowering those of others, translating into cuts of 1.4 billion barrels per day, according to Reuters.