According to an AP News report, Saudi Arabia is preparing to cut its oil supply —and it could mean higher gas prices for U.S. drivers heading into the summer.
The current average gas price is $3.55 per gallon.
From AP News:
The Saudi cut of 1 million barrels per day, to start in July, comes as the other OPEC+ producers agreed in a meeting in Vienna to extend earlier production cuts through next year.
Calling the reduction a “lollipop,” Saudi Energy Minister Abdulaziz bin Salman said at a news conference that “we wanted to ice the cake.” He said the cut could be extended and that the group “will do whatever is necessary to bring stability to this market.”
The new cut would likely push up oil prices in the short term, but the impact after that would depend on whether Saudi Arabia decides to extend it, said Jorge Leon, senior vice president of oil markets research at Rystad Energy.
The move provides “a price floor because the Saudis can play with the voluntary cut as much as they like,” he said.
RNC Research shared the story on Twitter along with a clip from CNN.
“Gas prices — which are still $1.16/gal higher today than when Biden took office — could go even higher amid Saudi Arabia’s cuts to oil production,” RNC tweeted.
“It really brings into question, though, Biden’s trip to Saudi Arabia and the goal of that — and look what has happened since.”
Watch the clip below:
Gas prices — which are still $1.16/gal higher today than when Biden took office — could go even higher amid Saudi Arabia's cuts to oil production.
"It really brings into question, though, Biden's trip to Saudi Arabia and the goal of that — and look what has happened since." pic.twitter.com/k8osCBTcJx
— RNC Research (@RNCResearch) June 5, 2023