U.S. crude prices fell more than 4% Wednesday after the Organization of Petroleum Exporting Countries delayed a pivotal meeting on production cuts that was scheduled for the weekend.

The West Texas Intermediate contract for January dropped $3.27, or 4.2%, to $74.50 a barrel, while the Brent contract for January fell $3.32, or 4.03%, to $79.13 a barrel.

Oil prices rose Monday after Saudi Arabia said it would slash output by another one million barrels per day for at least a month starting in July as part of an effort by OPEC+ producers to shore up crude prices.

At 5.30 a.m. ET, Brent crude, the global benchmark, was trading up 2.3% at nearly $78 a barrel, while WTI, the US benchmark, rose 2.4% to $73.50. Gasoline futures were up 1.5%, but the average US pump price for a gallon of regular unleaded gas was unchanged at $3.55.

The government of Saudi Arabia announced Sunday that it will voluntarily cut oil production by about 1 million barrels a day, likely sending gas prices higher this summer in the U.S.

The Gulf kingdom, the largest oil producer in the Organization of Petroleum Exporting Countries, confirmed that it will cut production from 10 million to 9 million barrels despite OPEC at large announcing it will not alter production plans for the remainder of 2023.

Saudi Arabia will cut its oil production by 1 million barrels per day in a move to boost oil prices, according to a Sunday announcement.

“This is a Saudi lollipop,” Saudi Energy Minister Prince Abdulaziz said of the decision reported in Reuters.

OPEC and its allies will meet on Sunday to debate a new deal possibly adjusting countries’ output quotas and a further cut in production, sources told Reuters, as the group faces flagging oil prices and a looming supply glut.

OPEC+, which groups the Organization of the Petroleum Exporting Countries and allies led by Russia, pumps around 40% of the world’s crude, meaning its policy decisions can have a major impact on oil prices.

Energy prices in Europe were trending downwards in March, but OPEC's production cut at the beginning of April has renewed pressures as winter approaches.

In 2022, following Russia's invasion of Ukraine, finance ministries across the continent doled out vast energy subsidies to head off a precipitous drop in living standards and recession.
They will now struggle to repeat the same generosity in the context of high interest rates and jumpy financial markets.

Gasoline prices are likely to increase ahead of peak driving season as a result of the announcement Monday that several oil-rich nations will cut oil production, multiple analysts told FOX Business.

On Monday, the Organization of the Petroleum Exporting Countries (OPEC) announced massive oil production cuts in a potential blow to global energy markets. As part of the announcement, OPEC members, led by Saudi Arabia and joined by Iraq, the United Arab Emirates, Kuwait and other Middle Eastern countries, will reduce oil drilling by about 1.16 million barrels per day.

Several of the world’s biggest oil producers say they are cutting production, and that means oil prices are higher. It’s probably not ideal for gas prices, inflation, and consumers, but it’s also not the worst. That is the TL;DR of what is happening on oil right now.

The Organization of the Petroleum Exporting Countries and its allies said they decided Sunday to cut production in an effort to support oil-market stability, but that offers little comfort to consumers worried about inflation and an expected spike in fuel demand during the coming summer driving season.

The surprise output reduction by the group known as OPEC+ starting in May also comes at a particularly vulnerable time for the U.S., which may not be able to quickly increase its own production.

Crude prices surged in early trading Monday after a surprise announcement by Saudi Arabia and other major oil produces to slash output by more than a million barrels a day. The move is all but certain to send gas prices higher, adding another wrinkle to broader efforts to rein in inflation.