Price Hikes Coming: Saudis Slash Production By 1M Barrels/Day; Putin Wins

Saudis, Other Oil Suppliers

FILE - A gasoline price board is displayed at a gas station in San Francisco, Tuesday, July 19, 2022. California Gov. Gavin Newsom, on Friday, Sept. 30, 2022, directed state regulators to let oil refineries switch to a winter gasoline blend earlier than normal in an effort to lower soaring gas prices. He also called on the Legislature to pass a new windfall tax on oil industry profits. (AP Photo/Jeff Chiu, File)
  • Saudi Arabia and other major oil producers on Sunday announced surprise cuts totaling 1.15 million barrels per day from May until the end of the year, a move that could raise prices worldwide.
  • Higher oil prices would help fill Russian President Vladimir Putin’s coffers as his country wages war on Ukraine and force Americans and others to pay even more at the pump amid inflation fueled in part by that conflict.
  • It was also likely to further strain ties with the United States, which has called on Saudi Arabia and other allies to increase production as it tries to bring prices down and squeeze Russia’s finances.