Oil prices rose after major oil-producing countries announced a round of surprise production cuts on Sunday totaling about 1.16 million barrels a day, a move that drew criticism from the White House.
Reuters reported that oil prices rose about $5 a barrel as trading in Asia opened on Monday morning, and Brent Futures crude prices rose about 6.3 percent to $84.95 a barrel. , its highest price in about a month.
West Texas Intermediate crude also jumped as much as 8 percent in early trading, hitting $80 a barrel, its biggest one-day jump in a year, according to Bloomberg.
Saudi Arabia, along with Russia and other OPEC+ countries, announced the production cut on Sunday, due to start next month, in a move aimed at raising global oil prices.
It adds to a previous commitment by producers to cut production by 2 million barrels per day through the end of the year. Only Saudi Arabia announced that it would initiate a reduction of 500,000 barrels per day.
A spokesman for the White House National Security Council criticized the cuts on Sunday.
“We do not believe that cuts are advisable at this time given the uncertainty in the market, and we have made that clear,” the spokesperson said, adding that the administration remains focused on reducing US oil prices from their point of view. high last year, where gas prices peaked at $5 per gallon.
Average gasoline prices across the country were just above $3.50 a gallon, according to AAA.
Republicans criticized President Biden when gasoline prices soared last year, and the White House has touted falling prices in recent months as evidence of his success in fighting inflation.
Previous OPEC+ cuts have inflamed those tensions and prompted calls for Biden to reconsider his strategy towards Saudi Arabia, which has been a driving force behind the production cuts.
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