RIYADH — Saudi Arabia announced a unilateral cut of 500,000 barrels per day in oil production starting July 1, calling it a “precautionary measure” to stabilize the global oil market. Brent crude surged 4.2% to $87.40 per barrel within the hour — the biggest single-day jump in six weeks.
The move comes without OPEC+ coordination and is the Kingdom’s most aggressive unilateral production decision since the 2020 price war with Russia. Three OPEC+ sources said the group was not consulted in advance. Iran’s Oil Ministry called the cut “irresponsible.” Russia’s Energy Ministry said it would seek an emergency OPEC+ meeting.
High energy prices could reduce the effectiveness of US oil sanctions on Iran — a central element of Washington’s leverage over Tehran. The IEA said the cut could push Brent above $90 within weeks.
Written by Layla Hassan, Middle East & North Africa Correspondent