Saudi Arabia and other members of OPEC+ have announced a production cut of about 1.15 million barrels per day (bpd) in oil output, which is expected to cause a rise in prices. From May to the end of 2023, Saudi Arabia will voluntarily reduce its oil production by 500,000 bpd, based on the decision being a “precautionary measure” in supporting the stability of the oil market, according to a state news agency. Russia also confirmed a six-month extension of its voluntary oil production reduction by 500,000 bpd until the end of 2023. Other OPEC+ members, such as Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, also followed the suit of reducing their output. The collaborative production cuts were driven by the previous reduction of oil prices in March towards a 15-month low at $70 a barrel due to the ongoing global banking crisis, worrying the significant decline of global oil demand. Both West Texas Intermediate and International benchmark Brent Crude have risen following the easing of concerns of a potential global banking meltdown. Sunday’s decision is also based on the agreed output cuts by 2 million bpd by OPEC members and allies last October. However, the Biden administration, which has been advocating for more oil to the global market since Russia launched a full-scale military offensive against Ukraine, is dissatisfied with OPEC+’s decision. The global oil demand in 2023 accounts for more than 3 percent of global demand after Sunday’s announcement.