Saudi Arabia and Russia Extend Oil Cuts through December

Saudi Arabia and Russia Extend Oil Cuts through December

Saudi Arabia and Russia said on Tuesday they would extend voluntary oil cuts until the end of the year.

The Saudi production cut of one million barrels per day which first took effect in July will continue "for another three months until the end of December 2023", the Kingdom's energy ministry said in a statement.

Russia'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'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 "deepened", but Tuesday's announcement has kept it at the same level for now.

That decision "will be reviewed monthly to consider deepening the cut or increasing production", the energy ministry statement said.

Brent crude traded at $88 per barrel at the end of August, Riyadh-based firm Jadwa Investment said in a report distributed Sunday, noting that "although persistently