Oil prices fall to lowest since January despite Saudi-backed production cut
The price decrease could be worrisome for Saudi Arabia and its investment plans.
Oil prices have fallen to a yearly low, despite a recent production cut supported by Saudi Arabia and Russia.
The price of Brent crude oil fell to $77.17 a barrel on Wednesday, the lowest price since the $78.98 recorded Jan. 3. Prices stayed around there on Thursday, and stood at $77.05 at around 1 p.m. ET, according to market data.
Why it matters: The OPEC+ alliance met Sunday and decided to maintain their 2 million barrels per day production cut that they originally agreed to in October. The alliance consists of members of OPEC and a few allies, most notably Russia. Saudi Arabia is the biggest oil producer in OPEC, while the United Arab Emirates, Iraq and several other regional states are also members.
OPEC said Sunday’s decision was “driven by market considerations” in a statement. Saudi Arabia has been pushing for lower oil production in recent months in an effort to keep prices up.
