Oil prices surged in early morning trading after Saudia Arabia and other major oil producers announced a surprise cut in production. Several Gulf states on Sunday said they would decrease production by more than one million barrels per day.
The price of Brent crude oil was trading above $84 a barrel in Asia after jumping by more than $4 or 5 per cent.Analysts said higher oil prices would help fill Russian president Vladimir Putin’s coffers as his country wages war on Ukraine and force Americans and others to pay even more at the pump amid inflation fuelled in part by that conflict.
It was also likely to further strain ties with the United States, which has called on Saudi Arabia and other allies to increase production as it tries to bring prices down and squeeze Russia’s finances.
The cuts are in addition to a reduction announced last October that infuriated the Biden administration.
Saudia Arabia described the move as a “precautionary measure” aimed at stabilising the oil market. The cuts represent less than 5 per cent of the country’s average production of 11.5 million barrels per day in 2022.
Oil prices soar on producer output cuts; Asian shares mixed
Oil prices soared more than 5 per cent after Saudi Arabia and other major oil producers said they will cut production by 1.15 million barrels per day from May until the end of the year. Shares in Asia were mixed on Monday and the dollar rose against the Japanese yen.
US benchmark crude oil rose $4.14 to $79.81 per barrel, or 5.5 per cent, in electronic trading on the New York Mercantile Exchange. It rose $1.30 to $75.67 per barrel on Friday, ahead of the weekend meeting where members of the so-called OPEC+ group of oil exporting countries decided on the cuts, which are in addition to a reduction announced last October that infuriated the Biden administration.
Matt Mathers3 April 2023 08:32
Oil prices surge as Saudi and other OPEC nations slash production in shock move
Saudi Arabia and other major oil producers have announced surprise cuts totalling 1.15 million barrels per day from May until the end of the year, a move that could raise prices worldwide.
Higher oil prices would help fill Russian president Vladimir Putin’s coffers as his country wages war on Ukraine and force drivers around the world to pay even more at the pump amid inflation fuelled in part by that conflict.
Matt Mathers3 April 2023 08:27
Good morning and welcome to The Independent’s live business coverages.
We’ll be focusing on oil prices today after the price of oil rose after Saudi Arabia and several other Gulf states announced production cuts.
Stay tuned for all the latest updates.
Matt Mathers3 April 2023 08:26
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