Oil jumps as Saudi Arabia and Russia extend supply cuts to end-2023

Oil prices jumped about 2% on Tuesday after Saudi Arabia and Russia announced a fresh extension to their voluntary supply cuts, stretching a combined 1.3 million barrel per day (bpd) reduction for another three months through December.

Brent crude futures for November were up $1.44, or about 1.6%, to $90.44 a barrel by 1334 GMT, eclipsing the $90 level for the first time since last November.

Meanwhile, U.S. West Texas Intermediate crude (WTI) October futures rose $1.85, or about 2%, to $87.4.

Riyadh’s decision to extend its 1 million bpd voluntary cut will be reviewed monthly to consider whether to deepen the cut or increase production, state news agency SPA said on Tuesday.

Saudi Arabia was widely expected to extend its voluntary cuts into October.

Fellow OPEC+ member Russia also prolonged its voluntary cuts through the end of the year “to maintain stability and balance” on oil markets, Deputy Prime Minister Alexander Novak said on Tuesday.
The world’s second-largest oil exporter is reducing exports by 300,000 bpd for the period. It has been cutting output and exports in tandem with Saudi Arabia on top of existing OPEC+ supply reductions. Russia had said it would cut oil exports voluntarily by 500,000 bpd, about 5% of its output, in August and by 300,000 bpd in September. Russia is also reducing its oil production by 500,000 bpd until the end of 2024.

(What’s moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)

Download The Economic Times News App to get Daily Market Updates & Live Business News.

This article was originally published by Indiatimes.com. Read the original article here.