The high oil prices that may follow the decision would mainly fill the treasury of Russian President Vladimir Putin. Russia is also a major oil producer.
In addition, the decision creates additional friction with the United States (US). The US has previously asked Saudi Arabia and other allies to increase production precisely to put pressure on Russian finances.
Saudi Arabia itself states that the production reduction helps to stabilize the oil market.
Previous production reduction
In November last year, Saudi Arabia also reduced the country’s oil production, much to the chagrin of US President Joe Biden. He then threatened to pause cooperation with Saudi Arabia.
At the time, this was a reduction of 2 million barrels of oil per day.
