Oil Prices Rise After Saudi Arabia Cuts Production
AllSides Summary
Oil prices rose after Saudi Arabia said it would cut oil production by 1 million barrels per day.
The Details: Oil prices rose about 1.5% Monday morning. OPEC+ leaders reportedly clashed on Sunday over how to respond to slowing global energy demand. While the group decided to extend its previously-planned oil cuts to 2024, Saudi Arabia said it would voluntarily cut its production to about 9 million barrels per day starting in July.
For Context: WTI, the U.S. crude oil benchmark, fell to less than $68 per barrel by the end of May — almost half its $122 peak in June 2022. Analysts have attributed low oil prices to falling energy demand, spurred by a global manufacturing slowdown and falling consumer demand. Since last year, economists have predicted at least a mild global recession sometime in 2023.
How the Media Covered It: While many major sources on the left and center covered the story, coverage was sparse among outlets on the right. Some headlines differed in emphasizing Saudi Arabia’s effort to boost oil prices or OPEC’s internal controversy over production quotas. Covering the Sunday OPEC+ meeting, Fox Business (Lean Right bias) framed the global oil cartel as dismissing criticism from President Joe Biden.
Featured Coverage of this Story
From the Left
Oil prices jump after Saudi Arabia vows to cut production again
Oil prices rose Monday after Saudi Arabia said it would slash output by another one million barrels per day for at least a month starting in July as part of an effort by OPEC+ producers to shore up crude prices.
At 5.30 a.m. ET, Brent crude, the global benchmark, was trading up 2.3% at nearly $78 a barrel, while WTI, the US benchmark, rose 2.4% to $73.50. Gasoline futures were up 1.5%, but the average US pump price for a gallon of regular unleaded gas was unchanged at $3.55.
The Saudi production cut was its biggest in...
From the Center
Saudi oil cut could lead to long-term gas hike if demand climbs
The government of Saudi Arabia announced Sunday that it will voluntarily cut oil production by about 1 million barrels a day, likely sending gas prices higher this summer in the U.S.
The Gulf kingdom, the largest oil producer in the Organization of Petroleum Exporting Countries, confirmed that it will cut production from 10 million to 9 million barrels despite OPEC at large announcing it will not alter production plans for the remainder of 2023.
Patrick De Haan, head of petroleum analysis at GasBuddy, noted that oil prices shot up Sunday...
From the Right
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...
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