The price of crude oil has risen to a record $54 per barrel after Saudi Arabian oil minister Ali al-Naimi said on Tuesday that the country’s production would be cut by 50% as part of a deal with the U.S. to curb the use of fossil fuels.
The oil price rose to $54.88 per barrel on Monday from $54 at the start of the day, a more than three-fold increase, according to data from Bloomberg.
The price has now climbed to $57.50 per barrel since Nasdaq’s open.
Naimy said on Monday that the cuts will be implemented from April 1 and that the kingdom would cut production by 50%, a move the U:S.
is expected to announce this week.
“I am pleased that the United States has come forward with an agreement to reduce our use of oil,” Nasdaq Global Market’s chief investment officer said.
As the OPEC producer, Saudi Arabia is one of the world’s largest exporters of crude, with the United Arab Emirates, Iraq, and Russia all producing a fair amount of it.
The kingdom has also become a major consumer of crude from the U,A.,S.
and European countries.