US Drivers Brace for Higher Gas Prices as Saudi Arabia Cuts Oil Supply

Saudi Arabia will reduce its oil supply by 1 million barrels per day starting in July, in an effort to prop up the price of crude after previous cuts by OPEC+ failed to do so. The move is expected to push up oil prices in the short term, but the impact after that will depend on whether Saudi Arabia decides to extend the cut. The reduction in oil supply could mean marginally higher gas prices for US drivers. The previous cuts gave little lasting boost to oil prices, and there are concerns about economic weakness in the US and Europe, while China’s rebound from COVID-19 restrictions has been less robust than many had hoped.