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US drivers may see higher gas prices as Saudi slashes oil supply

Saudi Arabia will reduce how much oil it exports to the world in a bid to prop up the sagging price of crude, after two previous cuts by major producing countries in the OPEC+ alliance failed to push oil higher.

The Saudi cut of 1 million barrels per day, to start in July, comes as the other OPEC+ producers agreed in a meeting to extend earlier production cuts through next year.

Saudi Energy Minister Abdulaziz bin Salman said that the cut could be extended and that the group “will do whatever is necessary to bring stability to this market.”

The new cut would likely push up oil prices in the short term, but the impact after that would depend on whether Saudi Arabia decides to extend it.

The slump in oil prices has helped drivers in the US fill tanks more cheaply and gave consumers worldwide some relief from inflation.