John Kirby, the Strategic Communications Coordinator at the U.S. National Security Council, stated on Monday that Saudi Arabia’s decision to cut oil production has not significantly impacted oil prices.
During a press conference at the White House, Kirby expressed, “Our ongoing focus is ensuring a balance between supply and demand. The oil prices haven’t been dramatically affected by this announcement of additional cuts.”
Kirby further reiterated that President Joe Biden will remain focused on what’s best for the American people and their economy, ensuring their needs are met while leaving Saudi Arabia to discuss their decision on production cuts.
In a bid to lift prices, Saudi Arabia committed on Sunday to reduce its oil production by another one million barrels per day, starting from July. This move, coming mid-summer, is part of the OPEC+ group’s effort to bolster declining prices.
Gas prices have fallen from last year’s levels, a significant portion attributed to a decrease in oil prices. After peaking above $130 per barrel in March 2022, Brent crude prices have roughly halved. Brent crude climbed by less than 1% on Sunday evening to around $77 per barrel.
In response to Saudi Arabia’s decision to cut oil production, the White House said U.S. officials are focusing on the prices for American consumers.
A White House official told CNN, “As we’ve said, we believe that supply should meet demand and we will continue working with all producers and consumers to ensure energy markets support economic growth and lower prices for American consumers.”