The daily business briefing: April 3, 2023

Latest OPEC+ production cut sends oil prices rising, Tesla reports record quarterly deliveries after price cuts, and more

OPEC logo illustration.
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1. Oil prices surge after OPEC+ announces surprise output cut

OPEC+ on Sunday announced an unexpected one-million-barrel-per-day production cut. The group of oil exporting countries, led by Saudi Arabia and Russia, had previously said they would keep supply steady. The reversal threatens to push energy costs higher and slow an already weakening global economy. Saudi Arabia pledged to cut its output by 500,000 barrels a day. Kuwait, the United Arab Emirates, and Algeria also plan to reduce production. Russia said it would extend its March to June reductions through the end of 2023. "OPEC+ clearly want a higher price," said Gary Ross, a veteran oil consultant turned hedge fund manager at Black Gold Investors LLC. News of the cuts sent oil prices jumping 5 percent early Monday.

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Harold Maass, The Week US

Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.