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illuminem summarizes for you the essential news of the day. Read the full piece in The New York Times or enjoy below
🗞️ Driving the news: In an effort to bolster oil prices, Saudi Arabia announced on Thursday that it would extend its decision to reduce oil production by one million barrels per day into September
• This follows on from a previous agreement with Russia to cut production in a bid to stabilize the market
🔭 The context: Despite a strong recovery in oil prices, thanks in part to reduced fuel stockpiles in the US, pressure on prices has persisted throughout the year due to China's slow economic recovery
• For Saudi Arabia, maintaining high oil prices is vital to fund government spending and ambitious plans to diversify its economy beyond petroleum
🌎 Why does it matter for the planet: Fluctuations in oil prices may also influence the pace of transition to renewable energy sources.
⏭️ What's next: The Saudi move could add to the recent surge in U.S. gasoline prices
• The Biden administration is pressing Saudi Arabia to maintain high production levels as oil prices, determined on the global market, significantly influence U.S. gasoline prices
💬 One quote: "Saudi Arabia will produce nine million barrels a day in September, according to its energy ministry, about 9 percent of global production." (Cliff Krauss, US Business Correspondent at New York Times)
📈 One stat: Following the Saudi announcement, the global Brent oil price, which had risen by 16 percent in July, increased by over 2 percent to around $85 a barrel
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