U.S. Decries Surprise Oil Cuts By Saudi, OPEC+ Amid Uncertain Market Conditions: Not 'Advisable'

The U.S. on Sunday criticized the surprise oil output cuts by Saudi Arabia and other OPEC+ countries.

What Happened: The Biden administration said the oil output cuts were not advisable given the uncertain market conditions. 

"We don't think cuts are advisable at this moment given market uncertainty — and we've made that clear," a spokesperson for the National Security Council said, according to Reuters. 

See Also: OPEC+ Decision On Oil Production Cuts Just Roiled These Already Volatile Assets: What’s Going On?

“We're focused on prices for American consumers, not barrels, and prices have come down significantly since last year, more than $1.50 per gallon from their peak last summer,” the spokesperson said. 

“We will continue to work with all producers and consumers to ensure energy markets support economic growth and lower prices for American consumers.”

The Organization of the Petroleum Exporting Countries and its allies announced that they would make less oil, about 1.16 million barrels, starting in May. The surprise production cut will likely help the oil price bounce off their recent lows. 

According to AAA, the average price of gasoline in the U.S. is around $3.50 per gallon as of Sunday, which is a decrease compared to the average of $4.20 per gallon recorded about a year ago.

Read Next: Best Oil ETFs