The group of oil producing countries announced that several members will reduce production, totaling more than 1 million barrels of oil per day.
Some of the most significant cuts include:
- 500,000 barrels per day from Saudi Arabia
- 211,000 barrels per day from Iraq
- 144,000 barrels per day from the United Arab Emirates
- 128,000 barrels per day from Kuwait
Following the news, oil prices jumped, with U.S. benchmark West Texas Intermediate prices rising from about $76 per barrel to more than $80. International benchmark Brent crude jumped up from about $80 per barrel to around $86 following the announcement.
Andrew Lipow, president of consulting firm Lipow Oil Associates, told The Hill he thinks that in the coming weeks' gas prices at the pump, which stood at about $3.50 on Monday, should rise between 12 and 16 cents per gallon.
National Security Council spokesperson John Kirby said Monday that the U.S. doesn’t “think that production cuts are advisable at this moment given the market uncertainty and we made that clear” when asked to respond to the production cut announcement.
Read more about the situation tomorrow morning at TheHill.com.
