Saudi Arabia extends oil cuts, gas prices likely to continue rising

by ian

There’s a good chance that gas prices will continue to rise for the next few months.

This is due to consistent oil cuts from the oil-rich nation of Saudi Arabia. The Saudi Press Agency announced Thursday that the government will be making another 1-million-barrel-per-day cut moving into September.

This marks the third month of consistent cuts and will decrease the Saudi Kingdom’s production to 9 million barrels per day. This strategy is in line with other member nations of OPEC+, which have also voluntarily decreased their oil production exports this year.

Some analysts fear the move will drive prices up in the U.S. since President Joe Biden has partially relied on foreign oil for various needs.

AAA reports that the average national gas price in the U.S. is at $3.82. But Financial Issues host Shana Burt reminded her audience Friday that much of this climb was due to President Biden.