Saudi Arabia announced an extra voluntary oil-production cut of 1 million barrels a day, bringing output to its lowest in 18 years as the kingdom tries to prop up a nascent recovery in energy markets. The cut is particularly symbolic as it brings Saudi production below 8 million barrels a day, long seen by many consultants and traders as a red line the kingdom wouldn’t cross. It also signals the urgency felt by Riyadh to stabilize the market as rock-bottom prices force it to impose austerity measures, including ending monthly pay allowances for millions of public employees and raising taxes. |