Oil Supply Cuts in Saudi Arabia Could Lead to Higher Gas Prices in U.S.

The production drop is expected to start in July.

A middle-east oil producer is cutting back on production which could mean higher U.S. gas prices. Saudi Arabia says it will slash its global oil output by one million barrels per day. The production drop is expected to start in July and the move is part of an effort to boost sagging prices of crude oil. Two previous cuts by Saudi Arabia and other producers failed to push oil prices higher. That means gas prices could at least become marginally more expensive. Slumps in oil prices have helped drivers in the U.S. fill up at the pumps for less, giving consumers a break during high inflation.