A group of OPEC+ member countries on Sunday announced voluntary oil production cuts that will run from May through the end of this year.
The surprise move entails cuts of about 1.15 million barrels per day (BPD) and was led by Saudi Arabia, Iraq, United Arab Emirates and Kuwait. Saudi Arabia’s Ministry of Energy said in a statement the production cut “is a precautionary measure aimed at supporting the stability of the oil market.”
The move will likely cause oil prices to rise as output falls, which in turn would have a negative effect on consumers as gasoline prices increase. Average gas prices in the U.S. have ticked up about 13 cents over the last month to $3.50 a gallon according to AAA.
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