The OPEC Plus Decision to Cut Oil Output Surprises Markets

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OPEC made a big announcement on April 2nd. The Saudis were hinting that the production cost they implemented and the past were going to continue, which is why the decision surprised markets when it happened. So not only is Saudi Arabia surprising the United States with some of these cuts, but it's actually doing the opposite of what US officials say it promised to do. "It feels from Washington in a lot of ways like you're seeing a complete breakdown in this relationship," he says.

For decades, the United States and Saudi Arabia maintained an important strategic alliance, which gave the US access to Saudi oil in exchange for guaranteeing the kingdom’s security. But growing tensions between the two nations now threaten to rupture this relationship.

Bloomberg’s Ziad Daoud, Tom Orlik, and Nick Wadhams join this episode to explain what’s behind the US-Saudi rift, and why it could have far-reaching consequences for the US economy and potentially the 2024 presidential election.

Read the story: US-Saudi Oil Pact Breaking Down as Russia Grabs Upper Hand

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