Oil prices surged above $90 during trading after Saudi Arabia and Russia extended their plan to cut their oil supplies from the global market.
Saudi Arabia will prolong its plan to withhold the supply of 1 million barrels per day for 3 months ahead. Production cuts started in July. Total output for October, November and December will be 9 million barrels per day, according to a state owned agency.
The decision will be reviewed on a monthly basis according to the rise or fall of oil output. The cut plan is an extension to Saudi Arabia’s voluntary oil cut production which the Kingdom announced last April and will last to 2024, source added.
For his part, Russia’s deputy prime minister, Alexander Novak, said Russia will extend their voluntary supply cut of 3 hundred thousand barrels of oil a day “to maintain stability and balance” on oil markets.
Novak has said earlier that Russia along with its OPEC+ partners will announce oil cut parameters, at a televised government meeting with Putin.
Brent crude futures rose by $1.04 dollars, or 1.2 percent, to settle at $90.04 a barrel, closing above the $90 mark for the first time since November 16, 2022. U.S. West Texas Intermediate crude (WTI) futures gained $1.14, or 1.3 percent, to settle at $86.69 a barrel, also a 10-month high, according to Reuters.