Saudis to cut oil production by 500,000 barrels per day

Saudi Arabia has announced it will reduce its oil production by 500,000 barrels per day in response to a meeting between Russian President Vladimir Putin and US President Joe Biden in Dubai.

The production cut, which will take effect on June 1, 2021, will reduce the amount of oil the country produces by 2.5%. This is in line with a pledge made by the Organization of the Petroleum Exporting Countries (OPEC) and its allies to cut their output by 1.2 million barrels per day. The agreement was made in response to the meeting between Putin and Biden, which was held in the United Arab Emirates (UAE) on April 16.

The meeting was the first between the two leaders since Biden took office, and it was seen as a sign of improved diplomatic relations between the two countries. The two leaders discussed a range of topics, including the ongoing conflict in Syria, the situation in Ukraine, and the ongoing global energy crisis.

The production cut by Saudi Arabia is intended to help stabilize global oil prices, which have been volatile in recent months due to a combination of factors, including a drop in global demand and OPEC+ production cuts. The move is also seen as a signal to other producers, such as Russia and the US, to act responsibly and reduce their own production levels.

The production cut will be closely monitored by the international community, as it could have a significant impact on global oil prices. It is also likely to be seen as a sign of increased cooperation between the two countries, which is seen as a positive development for global energy security.