The Kingdom of Saudi Arabia announced on Sunday a voluntary oil production cut of 1 million barrels per day starting in July.

This unilateral decision, which was not followed by other OPEC+ members, represents around a 10% reduction in the Kingdom’s daily output.

The cut, which was announced by Saudi Energy Minister Prince Abdulaziz bin Salman Al Saud, will reportedly last for one month, although he said the time period was “extendable.”

Abdulaziz called the oil production cut the “Saudi lollipop,” saying it would sweeten the OPEC+ oil production cut deal agreed upon earlier in the year.

The move appears to counter the United Arab Emirates, which recently said it would raise its output by 200,000 barrels per day starting next year, although some experts say the Saudi Kingdom is one of the only OPEC+ countries with sufficient oil reserves to dramatically increase or decrease oil production.

Oil prices rose on Monday following the announcement, which has led to concerns in Washington that U.S. gas prices would also increase.

Several analysts believe the move highlights tensions with Russia, which has not cut oil production in concert with other OPEC+ members. Russia, however, did participate in the April production cut, which briefly led to higher oil prices.

The oil production cut could also be related to several ambitious Saudi infrastructure projects, such as the Vision 2030 plan, which includes projects like The Line and Neom. The kingdom reportedly requires oil prices to cost a minimum of $81 per barrel in order to meet the project’s funding goals.

While the cut in oil output could lead to higher gasoline prices in the U.S., it will also help American oil producers.

On Monday, Reuters said that U.S. crude oil exports would get a gain tail winds following the Saudi cuts but that it would come to the detriment of U.S. crude inventories.

In October, the U.S. announced it would be “reevaluating” its relationship with Saudi Arabia after the OPEC+ oil cartel decided to cut oil production by two million barrels a day.

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