NNA – Saudi Arabia and Russia said on Tuesday they would extend voluntary oil cuts until the end of the year, sending the price of Brent crude to a 10-month high.
The Saudi production cut of one million barrels per day which first took effect in July will continue quot;for another three months until the end of December 2023quot;, the kingdom#39;s energy ministry said in a statement.
Russia#39;s export cut of 300,000 bpd will continue for the same period, Deputy Prime Minister Alexander Novak said in a separate statement.
Brent crude rose above $90 per barrel on the news for the first time since November, while West Texas Intermediate, the main US futures contract, jumped 1.9 percent to $87.16.
Riyadh, the world#39;s biggest crude exporter, first announced its cut after a June meeting of the 23-nation OPEC+ alliance, which also includes Russia.
A statement in early August revealing the cut would last through September included a warning that it could be quot;deepenedquot;, but Tuesday#39;s announcement has kept it at the same level for now.
That decision quot;will be reviewed monthly to consider deepening the cut or increasing productionquot;, the energy ministry statement said.
The unilateral Saudi cut followed a decision in April by several OPEC+ members to slash production voluntarily by more than one million bpd — a surprise move that briefly buttressed prices but failed to bring about lasting recovery.
Last October, OPEC+ agreed to reduce output by two million barrels per day.
That decision riled the United States, which at the time accused Saudi Arabia, a security partner, of siding with Russia in the war in Ukraine.
Oil prices increased in July, the first month the Saudi-only cut took effect, clearing the $80 per barrel threshold analysts often say Riyadh needs to balance its budget, though the various production cuts could push that threshold higher.–AFP
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