Saudi Arabia risks angering US as it announces cut in oil production

Saudi Arabia cuts to cut its oil production (Alamy)

Saudi Arabia says it will cut oil production by 500,000 barrels per day from May until the end of 2023.

The move would likely raise oil prices, further straining relations between Riyadh and Washington as the world copes with inflation fuelled in part by the war in Ukraine.

The energy ministry said on Sunday that the cuts would be made in co-ordination with some Opec (Organisation of the Petroleum Exporting Countries) and non-Opec members, without naming them, and were in addition to a reduction announced last October.

It described the move as a “precautionary measure” aimed at stabilising the oil market.

Saudi Arabia angered the Biden administration last year when it and other Opec members agreed to cut production on the eve of US midterm elections in which inflation was a major issue.

Both the US and Saudi Arabia denied any political motives, saying they were focused on maintaining a healthy market price.