# Saudi Arabia's 'icing on the cake' oil cut could feed US producers

> Saudi Arabia pledged on Sunday to cut oil output by 1 million bpd, or 10%, in July on top of existing OPEC+ cuts. With the Saudi reduction, the group will take about 4.6 million bpd off the market in July, equal to 4.6% of global demand. OPEC+ also agreed to extend its 3.66 million bpd cuts into 2024.

- Date: 2023-06-05 · published 2023-06-05T12:00:00.000Z
- Category: policy · region Global · magnitude high
- Page: https://feedsoft.ai/events/35400-saudi-arabia-s-icing-on-the-cake-oil-cut-could-feed-us-producers
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md)

## Why it matters

Roughly 4.6 million bpd removed from supply is a large tightening that supports crude prices. US shale producers may respond with more output, which could cap the rally over time.

## Read by commodity

- WTI: bullish ▲
- BRENT: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2023-04-03 | [What to know about Saudi Arabia's stunning oil production cuts : NPR](https://feedsoft.ai/events/7950-what-to-know-about-saudi-arabia-s-stunning-oil-production-cuts-npr.md) | +5.4% | -0.0% |
| WTI | 2023-06-05 | [Saudi Arabia Cuts Oil Production to Boost Prices - The New York Times](https://feedsoft.ai/events/35669-saudi-arabia-cuts-oil-production-to-boost-prices-the-new-york-times.md) | -2.2% | -2.8% |
| WTI | 2018-01-21 | [Oil producers will cooperate beyond 2018, says Saudi Arabia](https://feedsoft.ai/events/66898-oil-producers-will-cooperate-beyond-2018-says-saudi-arabia.md) | +4.5% | -2.5% |
| WTI | 2021-01-05 | [Saudi Arabia to Cut Oil Production Sharply in Bid to Lift Prices - WSJ](https://feedsoft.ai/events/49053-saudi-arabia-to-cut-oil-production-sharply-in-bid-to-lift-prices-wsj.md) | +9.8% | +15.2% |
| WTI | 2023-04-02 | [Saudi Arabia, UAE and allies announce surprise oil production cuts \| The National](https://feedsoft.ai/events/36326-saudi-arabia-uae-and-allies-announce-surprise-oil-production-cuts-the-national.md) | +5.4% | -0.0% |
| BRENT | 2023-04-03 | [What to know about Saudi Arabia's stunning oil production cuts : NPR](https://feedsoft.ai/events/7950-what-to-know-about-saudi-arabia-s-stunning-oil-production-cuts-npr.md) | +7.4% | +1.0% |
| BRENT | 2023-06-05 | [Saudi Arabia Cuts Oil Production to Boost Prices - The New York Times](https://feedsoft.ai/events/35669-saudi-arabia-cuts-oil-production-to-boost-prices-the-new-york-times.md) | -1.7% | -1.8% |
| BRENT | 2018-01-21 | [Oil producers will cooperate beyond 2018, says Saudi Arabia](https://feedsoft.ai/events/66898-oil-producers-will-cooperate-beyond-2018-says-saudi-arabia.md) | +2.5% | -5.9% |

## Sources

- reuters.com: https://www.reuters.com/business/energy/saudi-arabias-icing-cake-oil-cut-could-feed-us-producers-2023-06-05/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.