The slump in oil prices has helped U.S. drivers fill their tanks more cheaply and gave consumers worldwide some relief from inflation. Saudi Arabia, the dominant producer in the OPEC oil cartel, was one of several members that agreed on a surprise cut of 1.6 million barrels per day in April. But some countries can’t produce their quotas, so the actual reduction is around 3.5 million barrels per day, or over 3% of global supply. The previous cuts gave little lasting boost to oil prices. The Saudi production cut and any increase to oil prices could add to the profits that are helping Russia pay for its war against Ukraine.

Source: The North Africa Journal June 04, 2023 07:39 UTC