The Wall Street JournalThe Wall Street Journal

Saudi Arabia’s oil production cuts reflect cost of reshaping economy

By Summer Said, Stephen Kalin

03 Apr 2023 · 4 min read

Saudi Arabia and its allies will cut over a million barrels per day, setting aside U.S. concerns, as they pursue nationalist energy policies to fund massive infrastructure projects, reports The WSJ.

Curated by informed

DUBAI—An oil production cut by Saudi Arabia and its allies demonstrated how Crown Prince Mohammed bin Salman is willing to set aside U.S. concerns to pursue a nationalist energy policy aimed at funding an expensive makeover of his kingdom.

This weekend’s move came as a surprise after Saudi Energy Minister Prince Abdulaziz bin Salman told industry analysts privately in February that the kingdom would tolerate oil prices slipping to around $65 or $70 a barrel, according to analysts and Saudi officials familiar with the matter. Brent crude, the international benchmark, was trending downward since late last year on global recession fears, nearing $70 a barrel last month. On Monday, oil prices posted their steepest one-day increase in more than a year, rising 6.3% to $84.93 a barrel.

The news, curated.

Subscribe in our mobile app to continue reading this The Wall Street Journal article

Already subscribed? Sign in

Get world-class journalism from premium publishers, curated by editors and experts. All in one app.

Subscribe now and get 14 days free.