SAUDI’s decision to further reduce oil production is likely to escalate tensions with Washington and risks reigniting inflation in Britain and Europe.
Saudi Energy Minister Prince Abdulaziz bin Salman announced the kingdom’s plan to reduce oil output during a meeting of OPEC Plus member states at its headquarters in Vienna on Sunday.
The oil minister, who is the brother of Saudi Crown Prince Mohammed bin Salman Al Saud, said the new set of production targets is “much more transparent and much more fair.”
He added that Riyadh could extend the production cuts beyond July if necessary and vowed the group will do whatever it takes to bring stability to the global market.
Other OPEC Plus members agreed to extend earlier cuts in supply through the end of 2024 by slashing 1.4 million barrels of oil per day.
In April, the group agreed to voluntarily cut 1.6 million barrels of oil per day which took effect in May until the end of 2023.
OPEC Plus is a group of 23 oil-exporting countries that meets regularly to regulate oil supply and influence the price of the precious commodity on the world market.
Member states include Saudi Arabia and Russia as well as Middle Eastern countries that hold more than 80% of the world’s proven oil reserves.
Western nations have accused OPEC of manipulating oil prices and of siding with Russia despite the sanctions.
But the organization hit back and slammed the West for their money-printing activities which caused inflation to soar over the last decade and forced oil-producing nations to make a way in maintaining the value of their main export.
OPEC Plus provides around 40 percent of the world’s oil which means their policy decisions can have a major impact on global oil production.
