Since Saudi Arabia and OPEC+ crude oil producers announced additional production cuts of about 1.16 million barrels per day (bpd), there has been increasing concern that these efforts will affect American consumers by adding to inflationary pressures, particularly at the pump.
U.S. oil prices had been trending downward since hitting a peak of $130 per barrel last spring, collapsing to as low as $67 in March.
While heading into 2023, there were a lot of uncertainties, such as a drop in demand amid slowdown concerns, higher worldwide supplies, and a slower-than-expected reopening of China’s economy. The Saudi Arabia-led voluntary cuts helped “stabilize oil prices,” says Simon Wong, a market analyst at Gabelli Research….