OPEC Plus to extend oil production cuts as prices stagnate 

As gas prices remain flat, the group of oil-producing nations decided on Sunday to extend oil production cuts through 2024.  

The Organization of the Petroleum Exporting Countries (OPEC) and its partners, named OPEC Plus, held a meeting Sunday where the group — led by Russia and Saudi Arabia — decided to extend the oil production cuts. OPEC described the move as aiming to “achieve and sustain a stable oil market, and to provide long-term guidance for the market, and in line with the successful approach of being precautious, proactive and preemptive,” in a press release.  

Saudi Arabia, along with Russia and other OPEC+ oil producers, announced in April that they are planning on cutting 1.16 million barrels per day. This decision came after the oil producing countries had already pledged to cut production of 2 million barrels a day through the end of the year. 

The National Security Council criticized the move at the time, saying that the administration does not think cuts are “advisable at this moment given market uncertainty.” President Biden had also threatened that there would be “consequences” for Saudi Arabia, after the country announced the production cut last October of about 2 million barrels per day. 

This move is not expected to affect gas prices in the United States, as pump prices have remained flat even after Memorial Day weekend travel. As of Sunday, the national average of gas prices was $3.55 per gallon, according to AAA.