The OPEC+ oil alliance announced plans Wednesday to cut production by 2 million barrels per day, a decision that could cause gas prices to rise and create more financial difficulties for the already struggling economy.
The larger-than-expected oil production cut will start in November, The Associated Press reported.
Saudi Energy Minister Abdulaziz bin Salman, whose country was a founding OPEC+ member, stressed the oil cartel’s role in ensuring stable energy markets.
“We are here to stay as a moderating force, to bring about stability,” he said.
The White House condemned the oil cartel’s decision and said next month the Energy Department will release another 10 million barrels from the Strategic Petroleum Reserve, which is already at its lowest stockpile levels in nearly four decades.
The national average price for a gallon of gas rose by more than five cents from last week to $3.83 on Wednesday, according to data from AAA.
Patrick De Haan, founder of gas price monitor GasBuddy, predicted in a tweet that the cartel’s production cut will increase U.S. gas prices by “roughly” $0.15 to $0.30 a gallon.