Why is Saudi Arabia going it alone on costly oil cuts?

The unilateral production cuts could hurt its finances while raising gas prices for drivers and OPEC

An illustrated image of oil rigs and oil barrels
Saudis will be selling less oil, so a modest price hike will leave the kingdom with less revenue
(Image credit: Illustrated / Getty Images)

OPEC+ energy ministers met in Vienna over the weekend, and most of the gathered nations agreed Sunday to maintain previously agreed-upon reduced oil output through the end of 2024. The United Arab Emirates won permission to boost oil production. But Saudi Arabia, OPEC's most important member, announced it will unilaterally cut production by 10%, or 1 million barrels a day, starting in July.

OPEC and its Russia-led allies almost always cut or raise output in tandem, using their official meetings to rubber-stamp production plans agreed to beforehand, but last weekend saw "one of the most contentious production meetings in recent years," The Wall Street Journal reported. Saudi Energy Minister Prince Abdulaziz bin Salman wanted across-the-board cuts to boost oil prices, but other members, especially in Africa, fiercely resisted.

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Peter Weber, The Week US

Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.