According to The Hill, a group of oil-producing nations pledged on Sunday to cap oil production until 2024, as gasoline prices held steady. The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC Plus, met on Sunday and pledged to prolong oil production cuts led by Russia and Saudi Arabia.
The Hill reported that OPEC described the move as “consistent with its successful approach of achieving and maintaining a stable oil market, and providing long-term guidance for the market and being precautionary, proactive and pre-emptive”.
In April, Saudi Arabia, Russia and other OPEC+ oil producers announced their intention to cut production by 1.16 million barrels per day. Oil-producing countries previously agreed to reduce their production by 2 million barrels per day by the end of the year. When the decision was made, the National Security Council criticized it, saying the administration did not consider the cuts “advisable given the uncertainty of the market at this time.”
The Hill reported that President Biden also threatened that there would be “consequences” for Saudi Arabia after announcing a production cut of nearly 2 million barrels per day last October. The move is not expected to affect gas prices in the United States, as pump prices have remained stable even after Memorial Day weekend travel. As of Sunday, the national average for gas prices was $3.55 per gallon, according to AAA.
(With inputs from ANI)
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