United States government has brushed off a recent production cut by the Saudi-led OPEC+ oil producers, stating that it is not advisable at this moment. National Security Council spokesman John Kirby said that the cuts will have limited impact on the US economy and added that the United States made its position clear. The OPEC+ countries announced a cut of one million barrels a day, which was led by Saudi Arabia, a longtime close ally of the United States. Russia, another member of OPEC+, also stated that it will extend a previously announced unilateral cut of 500,000 barrels a day.
The Biden administration had been angered by production cuts last year, which led to a surge in fuel prices across the United States. However, Kirby said that the situation has improved since then and that crude oil prices are currently around $80 a barrel, compared to as much as $120 a year ago. Kirby also noted that the United States is focused on prices and that the latest production cuts were not completely unexpected.
Despite the troubled relationship between the United States and Saudi Arabia, Kirby said that the country is still considered a strategic partner, although they don't always see eye to eye on everything. It remains to be seen how the market will react to these latest developments, but for now, the United States government is moving ahead and focusing on other priorities.
