Saudia Arabia announced it will soon begin reducing how much oil it contributes to the global economy after two previous supply cuts from major oil-producing countries in the OPEC+ alliance failed to lead to a price increase of the commodity. Starting July 2023, Saudi Arabia will begin cutting 1 million barrels of oil per day from the global supply.

Saudi Arabia’s Minister of Energy, Abdulaziz bin Salman, said during a news conference that the cuts could be extended and that the OPEC+ group will do “whatever is necessary to bring stability to this market.” Moreover, he claimed that the decision provides a "price floor” for oil because “the Saudis can play with the voluntary cut as much as they like.”

Saudi Arabia, the dominant producer of oil in OPEC, was one of several members that agreed to begin cutting back oil contributions by 1.6 million barrels per day starting April 2023. At the time, Saudi Arabia’s 500,000-barrel share made up just over 31% of the total daily cutbacks.