HEAVYWEIGHT producer Saudi Arabia’s plan to extend oil production for another month could potentially increase gas prices in the United States.
The voluntary cut has been extended until September, with the possibility of getting extended and deepened.
This is the second time the oil-rich kingdom has extended the cut since it was first announced in June.
It adds to the r 1.66 million barrels per day of voluntary cuts put in place by nine member countries of the Organization of the Petroleum Exporting Countries or OPEC until the end of 2024.
Analysts were already expecting the oil supply cut after Saudi Arabia introduced the additional cutback last month in a bid to support higher oil prices amid faltering demand.
Saudi Arabia is the largest exporter of crude oil in the world and holds 15% of the world’s proven oil reserves.
Meanwhile, Saudi Arabian Oil Group, or Aramco has repeatedly achieved the largest annual profits in global corporate history after it earned an astonishing profit of $161 billion in 2022, making it one of the largest companies in the world by revenue.
Around the same time, Russia has also announced to cut oil exports by 300,000 barrels per day starting in September.
